REG - Kavango Resources - ZIM: Nara Option Exercise, Subscription Commitment

Kavango ResourcesAnnouncement

Tue 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250701:nRSA1593Pa&default-theme=true

RNS Number : 1593P  Kavango Resources PLC  01 July 2025

PRESS RELEASE

01 July 2025

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

ZIM: Nara Option Exercise & $5m Subscription Commitment

Kavango Resources plc (LSE: KAV), the Southern Africa focused metals
exploration and gold production Company, is pleased to announce it has
exercised its option to acquire 100% of the Nara Gold Project ("Nara"),
Zimbabwe.

To fund the Nara acquisition and provide working capital for development,
Kavango has received a written commitment from Purebond Limited to subscribe
for the equivalent of US$5million worth of new ordinary shares in the Company
at 1p per share (the "Subscription"). The Subscription is expected to form
part of the fundraise associated with the Company's forthcoming listing on the
Victoria Falls Stock Exchange. Further updates will be provided shortly.

Kavango intends to release its technical and commercial appraisal of Nara in
the coming month.

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

"Once we have completed the Nara acquisition, Kavango will own 100pc of two
significant gold mining projects in the Filabusi Greenstone Belt. Both
projects are fully permitted mining leases that are held in perpetuity by
production. This puts Kavango in a strong position to generate free-cash flow
over the long-term.

Thanks to Purebond's support, we have built our business through equity
investment and have no debt. Our debt-to-equity ratio is zero and our hope is
shareholders will enjoy good returns over the coming years.

At the Hillside Gold Project, we are working towards an initial production
target of 250tonne per day. We aim to achieve this over the next 12 months.
Now that we are about to add Nara to our portfolio, we can pursue an even more
ambitious plan.

We look forward to providing further updates in the next month."

Nara Gold Project Option Agreement

Kavango entered the option to acquire Nara in June 2023 (announced
>>> 26 June 2023
(https://polaris.brighterir.com/public/kavango_resources_plc/news/rns/story/x5zmj9x)
). Full details of the option agreement to acquire Nara can be read HERE
(https://polaris.brighterir.com/public/kavango_resources_plc/news/rns/story/x5zmj9x)
.

Kavango's Operations in Zimbabwe

Kavango is exploring for gold deposits in Zimbabwe that have the potential to
be developed into commercial scale production quickly through modern
mechanised mining and processing. The Company is targeting both open-pit and
underground opportunities.

Kavango has two projects on the Filabusi greenstone belt, Hillside and Nara.

Kavango owns 100% of the Hillside Gold Project, having exercised its option in
April 2024. Here, the Company has three high priority targets it aims to bring
into production over the next 18 months: Bill's Luck (Prospect 1), Steenbok
(Prospect 4) and Nightshift (Prospect 3). At Nightshift, Kavango is
investigating the potential for a selective open-pit mining operation,
followed by underground mechanised mining. Meanwhile, at Steenbok, Kavango is
pursuing a high-grade mechanised underground mining opportunity. Kavango is
currently analysing the latest drill data from Bill's Luck and will provide an
update shortly.

In addition, Kavango owns 100% of the Nara Gold Project, having exercised its
option in June 2025. Here, the Company is exploring for a large-scale,
mechanisable underground gold deposit. The primary target zone is around the
historic N1 mine, where the Company is assessing the potential to expand
artisanal workings both at depth and along strike.

Click the following link to view a video, introducing Kavango's new General
Manager for mining in Zimbabwe, Everjoy Ngomamiti >>> Here
(https://www.youtube.com/watch?v=wyjDiWV2ecA) .

Further information in respect of the Company 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

Shard Capital (Broker)

Damon Heath

+44 (0) 207 186 9952

BlytheRay (Financial PR)

Tim Blythe/Megan Ray/Said Izagaren

kavango@blytheray.com (mailto:kavango@blytheray.com)

Tel: +44 207 138 3204

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDFZGGNDMMGKZG