KINGSTONE ZIMUNYA
HARARE – A year after commencing operations in Zimbabwe, London Stock Exchange listed mineral explorer Kavango Resources has announced plans for a secondary listing on the Victoria Falls Stock Exchange (VFEX).
Kavango has since engaged Inter Horizon Advisory (IH) as the lead financial advisor to the proposed transaction.
IH's mandate includes obtaining regulatory approvals and preparation of key documents including the proposed transaction Pre-listing Statement.
In announcing the development, Kavango reaffirmed its commitment to ensuring that Zimbabweans benefit from its operations in the country.
"The proposed listing will provide an opportunity for Zimbabwe-based investors to participate in Kavango's exploration and mining development opportunities," the company stated.
"This will provide the Company with access to an enlarged pool of capital and shareholder base and meet Kavango's strategic objective of promoting strong local ownership in its projects."
Chief Executive Officer of Kavango Resources, Ben Turney, echoed these sentiments, commenting, "A key part of our strategy is to promote local ownership in Kavango to share the rewards of future success.
"A thriving VFEX has the potential to attract significant foreign investment and Kavango looks forward to demonstrating that Zimbabwe is indeed 'open for business.'"
In addition, Kavango announced the appointment of Thamsanqa Mpofu as the Chairman of Kavango Zimbabwe (Private) Limited, the Company's wholly owned subsidiary in Zimbabwe.
The seasoned executive is a past board Chairman of ZB Financial Holdings Limited, a diversified Zimbabwe Stock Exchange listed financial services company and was previously an independent non-executive director of Rio Zim (Pvt) Ltd, as well as executive board member of Meikles Hospitality (Pvt) Limited.
In accepting the appointment, Mr Mpofu expressed his delight at the opportunity to lead Kavango's Zimbabwean operation, saying, "It is a great honour and privilege to have been appointed Chairman of Kavango Resources Zimbabwe. I'm excited to be part of this vision, working with a dynamic team in developing new opportunities in mineral exploration and development."
Kavango has operations in Zimbabwe and Botswana.
The company made its first investment in Zimbabwe last year with an option to buy 45 gold claims, having seen the opportunity that lies in years of low exploration activity in the country.
It is currently exploring its Nara Project in Matebeleland North, with the first phase of drilling at Nara already underway.
Other projects include the Hillside Project comprising of 44 gold claims covering 503 hectares within trucking distance of the Nara Project, and the Leopard Project which is still at exploration stage.
As at close of day today, Kavango Resources was trading at 1.50 GBX on the London Stock Exchange.
Once the listing becomes official, Kavango will become the third miner on the bourse, after Bindura Nickel Corporation [BIND.VX]and Caledonia [CMCL.VX]; while Padenga [PHL.VX], which controls Dallaglio, also listed in 2021.
The VFEX, Zimbabwe's USD-denominated bourse, is slowly but surely becoming a favoured source of capital for foreign entities operating in Zimbabwe.
As at 29 July 2024, its listed market capitalisation stood at US$1.26 billion for 15 listed securities.
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