Kavango secures 14 percent stake in Pambili Natural Resources Corporation
Kavango Resources Plc, a firm with mining interests in Zimbabwe is set to convert the US$250 000 convertible loan plus a US$60 000 Loan Premium into common shares in Pambili Natural Resources Corporation. This effectively means that Kavango will own approximately 14 percent of the enlarged share capital of Pambili and will become an Insider of the Corporation.
In an update, the TSX-V determined that the previously announced Premium of US$75 000 exceeds its guidelines and Kavango has therefore agreed to reduce the Premium to US$60 000 being the maximum allowable amount resulting in an effective interest rate of 24 percent on the loan. “After giving effect to the exchange rate, the Loan and Premium (C$423 770) will be settled through the issuance of 7 704 910 Shares at C$0,055 per Share.
“After giving effect to the Settlement and following the Acquisition of the Golden Valley Mine (announced on June 20, 2024) Kavango will own approximately 14 percent of the enlarged share capital of Pambili and will become an Insider of the Corporation,” reads part of the update. The common shares issued under the Settlement will be subject to a statutory four-month hold period.
Commenting on the development, Pambili CEO Jon Harris said the firm is in a strong position noting that they welcome Kavango as a strategic investor. “We have taken positive steps forward in our exploration of Golden Valley’s near and longer-term gold potential. “Following the TSXV’s recent approval of our acquisition of the project, we are ready to push on with preparations for our planned underground drilling programme.
“The funds provided by Kavango will be key in advancing this pivotal work and we welcome them as a strategic investor.” He said the goal is to identify an initial source of ore to bring the mine back into full production. “This stands to provide us with a source of revenue we can invest directly into operation expansion.”
Kavango CEO Ben Turney said Kavango and Pambili share an appreciation of the immense, under-explored gold potential across Zimbabwe’s many greenstone belts. “Our common goal is to support the nation as it enters the modern mining era. “We have been highly encouraged by Pambili’s progress at Golden Valley and welcomed the recent news that the TSXV approved the company’s acquisition of the project. “Kavango will support them fully as a strategic investor.”-chroncile
