Mining entities in strategic partnerships
Nqobile Bhebhe, [email protected]
TWO mining entities with interests in Zimbabwe — Pambili Natural Resources Corporation and Kavango Resources Plc have entered into strategic partnerships as the two companies position themselves to be among leading players in the gold sector.
Recently, Pambili, a resources exploration and development company with interest in Matabeleland North secured a six-month US$250 000 loan from Kavango Resources to be channelled towards working capital.
In addition, it is also active in the Canadian province of Alberta.
On Wednesday, Pambili announced that Kavango, which was previously referred to as the arms-length third party, has given notice to convert the Loan and the Loan Premium of US$75 000 into common shares in the corporation.
After giving effect to the exchange rate, the repayment amount will be settled through the issuance of 8 925 000 Pambili common shares.
Kavango will own approximately 16,6 percent of the enlarged share capital of Pambili and will become an Insider of the Corporation.
Pambili CEO Mr Jon Harris said they are delighted to finally announce their association with a key strategic investor, Kavango Resources Plc, a company that shares its belief in the immense potential of the company’s gold consolidation strategy in Zimbabwe.
“I have been working with Ben Turney behind the scenes for the past year or so and the proposed settlement is confirmation of his belief in our vision for our future success in Zimbabwe.
“It is a particularly exciting time for Pambili right now. Earlier in the year, we established proof of concept for our strategy.”
Mr Harris said they recently acquired the Golden Valley project to take the firm’s next step towards developing a portfolio of cash-generating gold mines in Zimbabwe.
The mine, located 15 kilometres from Bulawayo, has installed capacity to process 40 tonnes of ore per day.
Kavango CEO Mr Ben Turney said the gold belts of southern Zimbabwe present enormous opportunities for gold exploration and mine development companies.
“This is perhaps one of the world’s last under-explored frontiers for large-scale gold deposits.
“The geology in this region is very similar to some of the most prolific gold fields of Australia that have enabled that country’s bulk-mining boom over the past 40 years,” he noted.
He added “Kavango is looking forward to working closely with Pambili, supporting the company and moving forward as a strategic partner as it builds its footprint in this exciting arena.
“Together, our two companies have formed a close working partnership and I am confident we will both benefit from the mutual support we can offer one another.
“As first movers, Pambili and Kavango are in a strong position to become leading players as the gold sector in Zimbabwe attracts international investment and grows.”
Kavango Resources is an exploration company targeting world-class base and precious metal discoveries in Botswana and Zimbabwe.
Gold is a key foreign currency earner for Zimbabwe besides tobacco, accounting for over 70 percent of the nation’s annual foreign currency inflows.
In October 2019, the Government launched the US$12 billion mining industry roadmap and the gold sub-sector is expected to contribute US$4 billion.
The Government has since then been working on a number of programmes to boost gold output as well as attract new investors to the sector.
There is also a programme to expand operations, revive or open closed mines as well as provide incentives to gold miners.