Kavango Resources PLC Investment in Pambili Natural Resources TSX-V:PNN (0422V)
29 November 2023 - 6:00PM
UK Regulatory
TIDMKAV
RNS Number : 0422V
Kavango Resources PLC
29 November 2023
29 November 2023
Kavango Resources PLC
("Kavango" or "the Company")
Investment in Pambili Natural Resources
Kavango Resources plc (LSE:KAV), the Southern Africa-focused
metals exploration company, is pleased to announce that the Company
has completed a strategic investment in gold mining, exploration,
and development company Pambili Natural Resources Corporation
("Pambili" or "the Corporation") (TSX-V:PNN).
Kavango has given notice to Pambili that it wishes to convert a
US$250,000 convertible loan (the "Loan") made to Pambili, along
with a Loan Premium of US$75,000 ("Repayment amount"), into common
shares in the Corporation ("the Conversion"). Following the
Conversion, Kavango will hold 15% of Pambili's total issued share
capital.
Pambili is active in Matabeleland in southern Zimbabwe, having
established operations here in 2022.
Kavango has worked with Pambili since March this year, assisting
it through a corporate restructure and acquisition of the Golden
Valley project, which completed earlier in November 2023 (Pambili's
announcement can be read >>> here).
Golden Valley has a history of high-grade underground mining and
gold production. Golden Valley includes a functional gold
processing plant and stamp mill, two historic shafts that present
prospective exploration targets and near surface exploration
potential to target a possible larger-scale deposit. Some
small-scale gold production continues at Golden Valley by way of
toll-milling third-party ore through an on-site stamp mill.
Pambili's plan at Golden Valley is to explore the underground
potential first, with a view to recommencing mining in Q1 2024. The
processing plant is ready to receive ore and plans are being
finalised for underground exploration drilling.
In parallel to this, Pambili will conduct surface exploration at
Golden Valley using Kavango's field team.
By taking a strategic interest in Pambili, Kavango is seeking to
build on its first-mover advantage in Matabeleland by increasing
its exposure to a third, highly prospective greenstone belt. Golden
Valley is located on a separate greenstone belt to the one that
hosts Kavango's Hillside and Nara projects and a separate
greenstone belt to the one that hosts the Leopard Project
(announced >>> 25 July 2023).
In addition, Kavango and Pambili will be able to share
operational, exploration and administrative functions. This is
expected to provide both companies with significant cost savings
and operational efficiencies.
Ben Turney, Chief Executive of Kavango Resources, commented:
"There is immense opportunity in Zimbabwe's Matabeleland
goldfields. Kavango has identified a strong pipeline of
opportunities across the region. Our investment in Pambili creates
for us an additional outlet for some of these.
We are very pleased to partner with Pambili, as Jon Harris and
his team recommence mining at Golden Valley. This is an exciting
project that Kavango knows well. It combines excellent potential
for near-term revenue generation with untested surface exploration
upside.
The greenstone belt that Golden Valley is on is highly
prospective for gold with a number of possibilities for further
expansion in the area. The processing plant is operational and can
be added to as Pambili grows. With what we've learned about
historic cut-off grades at Golden Valley, underground drilling
could deliver a very positive result.
We have been able to secure our investment in Pambili at a low
entry point. I expect our ongoing working relationship, supported
by the shared operational efficiencies it affords, has already
added, and will continue to add, substantially to our balance sheet
over time ."
Further information in respect of Kavango 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:
Kavango Resources plc
Ben Turney
+46 7697 406 06
First Equity (Broker)
Jason Robertson
+44 207 374 2212
Kavango Competent Person Statement
The technical information contained in this announcement
pertaining to geology and exploration have been read and approved
by Brett Grist BSc(Hons) FAusIMM (CP). Mr Grist is a Fellow of the
Australasian Institute of Mining and Metallurgy with Chartered
Professional status. Mr Grist has sufficient experience that is
relevant to the exploration programmes and geology of the main
styles of mineralisation and deposit types under consideration to
act as a Qualified Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'.
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