("Kavango" or "the Company")
ZIM:
The Cap-Ex Programme will comprise staged capital raises for investment into specific value-generating projects. The primary objective will be to define mineable gold resources and acquire plant and equipment for larger-scale production.
The first phase of the Cap-Ex Programme will focus on the
"We are extremely pleased with the rapid progress and achievements Kavango is making in
We commenced small-scale gold production at Hillside in March. Since then, we've built our mining and production teams and made modest improvements to the plant and site. We've also hosted several site visits by mining experts. In parallel, our exploration team has worked hard to deepen our understanding of Hillside's geology and structural setting. It is thanks to their efforts that we are now able to move into resource drilling.
With the strong foundation we have put in place, we are ready to initiate the first phase of our
If all goes to plan, we aim to commence production at the new plant by the end of H1 2025."
First Phase of the Cap-Ex Programme
The first phase of the Cap-Ex Programme has been designed to maximise near-term revenue generation in
· Capital investment in Kavango Mining
Kavango has designed a capital expenditure program to enhance existing small-scale gold production at Hillside, through improving existing processes and bringing historic mine shafts back into production. The Company believes this program will double existing gold production to 3kg a month by the end of Q4 2024.
· Resource drilling at the
Prior to commencing larger-scale mining at Hillside, Kavango will complete the current exploration drilling across its four highest ranked targets and then conduct resource drilling on the most prospective deposit. The Company would seek to establish a resource of at least 10,000 oz of gold defined within the top 100 m (below the current zone of depletion by the contract artisanal miners) with a further resource of at least 5,000 oz of gold defined in the next 50 vertical metres below that. A diamond drill rig will be used, as Kavango believes this approach will maximise the geological data gathered to guide future mining decisions.
As a rough target, Kavango aims to identify 73,000 tonnes of mineable ore to keep the Production Plant in continuous operation for two years.
· Commissioning of 100tonne/day ("t/d") gold processing plant (the "Production Plant")
Assuming Kavango meets its exploration targets at Hillside, Kavango Mining intends to commission a 100t/d gold processing plant. Kavango has been in close discussions with a South African manufacturer that has experience of designing, building and installing modern gold production plants across
· Investment in
Kavango will acquire a 45% stake in Equity Drilling for
The Cap-Ex Programme will consist of a series of financing initiatives to fund development of Kavango's mining and revenue generating activities. The board initially expects to raise money through standard issues of equity, with Purebond, the Company's largest shareholder, acting as cornerstone. As Kavango's business grows and the Company establishes a track record of success, the board anticipates accessing other pools of capital to fund growth.
Convertible Loan & Prospectus
As part of the first phase of the Cap-Ex Programme,
The Company has drafted a prospectus, which has received preliminary approval from the
Further information in respect of the Company and its business interests is provided on the Company's website at www.kavangoresources.com and on Twitter at #KAV.
For further information please contact:
Ben Turney
+46 7697 406 06
First Equity (Broker)
+44 207 374 2212
Jason Robertson
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