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UK firm secures US$5m to fund gold mines in Zimbabwe
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United Kingdom-based mining firm Kavango Resources Plc has secured a US$5 million interest-free funding facility from the Comarton Managed Pension Funds' Investments Consortium to accelerate its gold mining operations in Zimbabwe. The funding will also support the construction of a gold processing plant and lays the groundwork for Kavango's anticipated listing on the United States dollar-denominated Victoria Falls Stock Exchange (VFEX) later this year.
This investment marks a significant milestone for both Kavango and Zimbabwe's mining sector, as the country aims to ramp up gold production to 40 tonnes in 2025. The target follows a record-breaking 36.48 tonnes of gold produced in 2024. Gold remains Zimbabwe's largest foreign currency earner, and increased production capacity is expected to further strengthen the country's export performance.
Kavango's chief executive officer, Mr Ben Turney, described the funding agreement as a clear signal of investor confidence in Zimbabwe's economic direction. He said central to the company's strategy was promoting local equity participation that allows Zimbabweans to share in the company's long-term success.
"This transaction sends a strong message that Zimbabwe is open for business. We look forward to this investment acting as a cornerstone for our introduction to the Victoria Falls Stock Exchange a little later this summer," Turney said in a joint statement with the investment consortium.
The Comarton consortium comprises 28 Zimbabwean pension funds that have joined forces to diversify investments into strategic sectors. This latest partnership with Kavango represents their fourth major venture, having already made successful forays into property, tourism, and agriculture. Consortium members conducted rigorous due diligence, including site visits to Kavango's operations, before approving the investment.
Mr Turney praised the consortium's commitment to long-term investment and said the funds would be used to bring into production several gold prospects under the Hillside Project in Matabeleland. Kavango plans to begin production on Prospects 1, 3, and 4 within the next 12 months using modern, mechanized mining methods.
Kavango is operating in Zimbabwe through its wholly owned subsidiary, Kavango Zimbabwe, which was established in July 2023. The company is focused on historically high-grade gold deposits in the Matabeleland region and aims to establish a sustainable bulk mining operation.
Comarton Consultants (Private) Limited's managing director, Mr Richard Muirimi, said the investment aligns with the consortium's goal of creating hard currency-generating assets. He emphasized that the partnership will contribute significantly to economic growth, employment creation, and the generation of long-term value for Zimbabwean pensioners.
"With a firm focus on ensuring all four investment quadrants generate hard currency cash flows, this partnership will contribute to the enhancement of the payment of hard currency quarterly in USD pensions on the Comarton portfolio being implemented from 1 January 2025," said Muirimi.
According to the terms of the facility, the US$5 million will be disbursed over 12 months in three tranches. The first tranche of at least US$500,000 in hard currency will be released immediately to fund mine development. The second tranche, worth US$1.5 million, involves the conversion of Zimbabwe Gold (ZWG), the country's official currency, into US dollars through the Reserve Bank of Zimbabwe, which will be used to import mining equipment. The third and final tranche of US$3 million in US dollars will also go toward continued mine development over the year.
Kavango's expansion comes at a time when Zimbabwe is seeking to attract more foreign and local investment into its critical mining sector. The partnership with Comarton not only supports national production targets but also signals growing investor interest in sustainable, hard currency-generating ventures.
This investment marks a significant milestone for both Kavango and Zimbabwe's mining sector, as the country aims to ramp up gold production to 40 tonnes in 2025. The target follows a record-breaking 36.48 tonnes of gold produced in 2024. Gold remains Zimbabwe's largest foreign currency earner, and increased production capacity is expected to further strengthen the country's export performance.
Kavango's chief executive officer, Mr Ben Turney, described the funding agreement as a clear signal of investor confidence in Zimbabwe's economic direction. He said central to the company's strategy was promoting local equity participation that allows Zimbabweans to share in the company's long-term success.
"This transaction sends a strong message that Zimbabwe is open for business. We look forward to this investment acting as a cornerstone for our introduction to the Victoria Falls Stock Exchange a little later this summer," Turney said in a joint statement with the investment consortium.
The Comarton consortium comprises 28 Zimbabwean pension funds that have joined forces to diversify investments into strategic sectors. This latest partnership with Kavango represents their fourth major venture, having already made successful forays into property, tourism, and agriculture. Consortium members conducted rigorous due diligence, including site visits to Kavango's operations, before approving the investment.
Kavango is operating in Zimbabwe through its wholly owned subsidiary, Kavango Zimbabwe, which was established in July 2023. The company is focused on historically high-grade gold deposits in the Matabeleland region and aims to establish a sustainable bulk mining operation.
Comarton Consultants (Private) Limited's managing director, Mr Richard Muirimi, said the investment aligns with the consortium's goal of creating hard currency-generating assets. He emphasized that the partnership will contribute significantly to economic growth, employment creation, and the generation of long-term value for Zimbabwean pensioners.
"With a firm focus on ensuring all four investment quadrants generate hard currency cash flows, this partnership will contribute to the enhancement of the payment of hard currency quarterly in USD pensions on the Comarton portfolio being implemented from 1 January 2025," said Muirimi.
According to the terms of the facility, the US$5 million will be disbursed over 12 months in three tranches. The first tranche of at least US$500,000 in hard currency will be released immediately to fund mine development. The second tranche, worth US$1.5 million, involves the conversion of Zimbabwe Gold (ZWG), the country's official currency, into US dollars through the Reserve Bank of Zimbabwe, which will be used to import mining equipment. The third and final tranche of US$3 million in US dollars will also go toward continued mine development over the year.
Kavango's expansion comes at a time when Zimbabwe is seeking to attract more foreign and local investment into its critical mining sector. The partnership with Comarton not only supports national production targets but also signals growing investor interest in sustainable, hard currency-generating ventures.
Source - the herald
