Southern Africa focussed metals exploration company Kavango Resources has signed an option agreement to acquire two gold exploration projects in Matabeleland, southern Zimbabwe.
Under the option deal with the undisclosed vendors, Kavango has a binding six-month period to exercise the exclusive options at its sole discretion to acquire the Hillside and Leopard projects.
Kavango expects the two projects to have the potential to host bulk mineable gold deposits.
During the six-month option period, Kavango can undertake an appropriate exploration programme to assess the two projects’ potential.
To exercise the option, Kavango will pay $500,000 in cash to the vendors or its designate, as well as issue 84 million Kavango shares.
Kavango will also assume responsibility for the repayment of outstanding debts of $400,000 pertaining to the projects.
Comprising 40 contiguous gold claims, the Hillside project contains a historic high-grade underground mine.
The underground mine reported production of 18,000oz of gold at a grade of 7.7g/t over a strike length exceeding 350m.
Hillside is situated on the same greenstone belt as the Nara Project, where Kavango is undertaking due field diligence.
The Leopard project comprises 44 contiguous gold claims. It has supported historical gold production from two underground mines.
Kavango Resources CEO Ben Turney said: “I’m very pleased to announce that we have already been able to expand our footprint in Zimbabwe after signing the Nara project last month.
“The Hillside and Leopard projects both contain historically producing mines and have been underexplored with modern-day exploration techniques.”
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