Kavango Resources (LSE:KAV) has secured approximately US$8.4 million through subscription agreements in both Zimbabwe and the UK, issuing around 630 million new shares at a price representing a 33% premium to the company’s recent mid-market share price. Chairman and interim CEO Peter Wynter Bee participated in the UK placing, subscribing for 20 million shares.
The newly issued shares from the UK and VFEX tranches are expected to begin trading around 16 March 2026 following admission to the London Stock Exchange and the transfer of the Zimbabwe portion to the Victoria Falls Stock Exchange. Once combined with existing cash and previously committed funding, the company expects to have about US$13.5 million available to support its growth plans. These include expanding production at the Hillside gold project, pursuing the proposed acquisition of Nara, addressing associated litigation costs, advancing exploration programmes, and providing additional working capital for operations in Zimbabwe.
The company’s outlook remains constrained by weak financial performance, including significant operating losses and ongoing cash outflows despite only early-stage revenue generation. However, the balance sheet shows positive equity and moderate leverage, offering some stability. Technical indicators present a mixed picture, with neutral momentum and signs of short-term stabilisation, while valuation metrics remain difficult to support given the negative price-to-earnings ratio and the absence of a dividend yield.
More about Kavango Resources
Kavango Resources is a metals exploration and gold production company focused on Southern Africa, with listings on both the London Stock Exchange and the Victoria Falls Stock Exchange in Zimbabwe. The group is concentrating its operations in Zimbabwe, where it aims to increase gold production while pursuing growth through acquisitions and ongoing exploration activities.
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