Kavango Resources (LSE:KAV) has announced that the seller of the Nara Gold Project in Zimbabwe, Simon John Bowman, has failed to meet obligations under a call option agreement covering 45 mining claims. The company had exercised its option in June 2025 to acquire full ownership of the project, but alleges the agreed terms were not fulfilled. Kavango said it will now pursue legal remedies, including enforcement of contractual rights and potential compensation claims against Bowman and his company, Romjack Mining, in an effort to safeguard shareholder interests.
Despite the dispute, Kavango confirmed it will continue progressing operational priorities elsewhere in its portfolio. The company plans to increase gold production at the Hillside Gold Project while advancing efforts to farm out exploration assets located within the Kalahari Copper Belt. Management indicated that strengthening existing producing assets and partnerships could help offset risks associated with the Nara situation and support continued regional growth.
Kavango’s outlook remains constrained by financial pressures, including substantial operating losses and ongoing cash outflows alongside early-stage revenue generation. These factors are partly balanced by a balance sheet showing positive equity and moderate leverage levels. Technical indicators present a mixed picture, with neutral momentum and signs of short-term stabilisation, while valuation remains difficult to justify given a negative price-to-earnings ratio and the absence of dividend income.
More about Kavango Resources
Kavango Resources is a Southern Africa-focused metals exploration and gold production company listed in London and on the Victoria Falls Stock Exchange. The group is developing a portfolio of gold assets, including the Hillside Gold Project in Zimbabwe, while also pursuing base metals exploration opportunities within the Kalahari Copper Belt.
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