Kavango Resources has exercised its option to fully acquire the Nara gold project in Zimbabwe.

This move is part of the company’s strategy to expand its gold mining operations in southern Africa.

Kavango has also secured a written commitment from Purebond to subscribe for $5m in new ordinary shares of the company at 1p per share to finance the acquisition and provide working capital.

The investment is expected to be part of the fundraising associated with Kavango's upcoming listing on the Victoria Falls Stock Exchange.

Acquired in June 2023, the Nara project comprises 45 contiguous gold claims.

Kavango's technical and commercial appraisal of the Nara project is set to be released before the end of July 2025.

The company believes that Nara has the potential to host a bulk mineable gold deposit, with full access granted for comprehensive exploration and due diligence.

The exploration programme at Nara will include surface mapping, geochemistry, geophysics, drill testing and assessing the commercial viability of processing the tailings.

Kavango Resources CEO Ben Turney stated: “Once we have completed the Nara acquisition, Kavango will own 100pc of two significant gold mining projects in the Filabusi Greenstone Belt.

“Both projects are fully permitted mining leases that are held in perpetuity by production. This puts Kavango in a strong position to generate free cash flow over the long term.”

Kavango is focused on discovering gold deposits in Zimbabwe that can quickly transition to commercial scale production through modern mining and processing techniques, targeting both open-pit and underground opportunities.

Kavango already owns a 100% stake in the Hillside gold project, with the option exercised in April 2024.

In November 2024, the company announced plans for the construction of a new processing plant at the Hillside project to boost gold production capacity.

The new facility will support production at Prospect 4, which comprises 44 gold claims over 503 hectares and is conveniently located within trucking distance of the Nara project.