REG - Kavango Resources - Investment in Pambili Natural Resources TSX-V:PNN

Kavango ResourcesAnnouncement

29/11/2023 07:00

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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
(https://www.pambilinrc.com/news-releases/the-next-step-in-realizing-zimbabwes-untapped-potential-pambili-issues-shares-to-acquire-producing-gold-mine)
).

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
(https://www.investegate.co.uk/announcement/rns/kavango-resources--kav/option-to-acquire-further-zimbabwe-gold-projects/7654169)
).

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
(http://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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