London and Zimbabwe-listed mining firm Kavango Resources has raised about US$8,4 million from investors in Zimbabwe and the United Kingdom to accelerate the expansion of its gold projects in Zimbabwe.
The capital injection is expected to strengthen the development of the company’s Hillside Gold Project in Matabeleland South and also support further exploration and acquisition plans in the country.
In a statement, the company said it had raised the funds through parallel subscriptions in the UK and on Zimbabwe’s Victoria Falls Stock Exchange (VFex).
“Kavango Resources plc is pleased to announce that it has raised, by way of subscription, approximately US$4,7 million in Zimbabwe (the ‘VFex Subscription’) and £2,8 million (US$3,7 million) in the UK (the ‘UK Subscription’),” the company said.
The shares issued for the fundraise represent approximately a 33 percent premium to the mid-market price recorded on March 5, 2026.
The miner said a total of 629,99 million new ordinary shares would be issued under the two subscriptions.
The capital raise also attracted support from within the company’s leadership.
Chairman and interim chief executive officer, Mr Peter Wynter Bee, personally participated in the UK subscription, reinforcing management’s confidence in the project.
“Chairman and Interim CEO Peter Wynter Bee has subscribed for 20 million of the shares in the UK Subscription also at £0.01 (US$0,13) per share,” the company said.
The new shares are expected to begin trading on both the London Stock Exchange and the Victoria Falls Stock Exchange once regulatory approvals are finalised.
According to the company, applications have already been made for the shares to be admitted to the London market before being transferred to Zimbabwe through a branch register mechanism to enable trading on the VFex.
“It is expected that admission and the VFex Admission will become effective and that dealings in the UK Shares and the VFex Shares will commence at 8.00am on or around March 16, 2026,” the company said.
The successful capital raise comes at a time when many junior miners globally are grappling with tightening financing conditions and volatile commodity markets.
Kavango’s ability to secure funding from both international and local investors is seen as a sign of sustained investor interest in Zimbabwe’s gold sector, particularly as bullion prices remain near historic highs.
Gold is one of Zimbabwe’s most strategic minerals, accounting for the largest share of mineral exports by value and providing a critical source of foreign currency.
Zimbabwe’s 2025 gold exports hit record highs, with 44,7 tonnes valued at US$4,8 billion exported during the historic performance
The fresh capital will allow Kavango to accelerate development at its Hillside Gold Project, which is located in the Filabusi Greenstone Belt in southern Zimbabwe, a region historically known for gold deposits.
The project is producing about two kilogrammes of gold per month from small-scale operations, with plans to scale up production by expanding mining and processing infrastructure.
Kavango said proceeds from the latest fundraising will be combined with existing resources to advance several strategic initiatives in Zimbabwe.
“Proceeds from the VFex subscription and the UK Subscription, in addition to the existing cash resources of the company and committed funds, amount to approximately US$13,5 million,” the company said.
The funds will primarily be used to expand gold production and strengthen the company’s broader exploration programme.
“These funds are intended to be used for the further expansion of the Hillside gold production, the acquisition of Nara and any associated litigation expenses in order to complete such acquisition, further exploration and general working capital in Zimbabwe,” the statement added.
Hillside is the company’s flagship Zimbabwean asset and consists of multiple gold prospects, including Bill’s Luck, Nightshift, Britain and Steenbok, where exploration has already confirmed mineralised structures with potential for both open-pit and underground mining.
The capital raise underscores continued international investor appetite for Zimbabwe’s gold sector, which analysts say remains attractive due to strong bullion prices and the country’s vast yet underdeveloped mineral resources.-herald
