BRITISH miner Kavango Resources increased funding to its subsidiaries to US$37,2 million last year, underscoring an intensified push to advance exploration and development projects in Zimbabwe and Botswana.
Inter-company loans rose from US$21,7 million in 2024, reflecting sustained capital support across its portfolio.
Kavango said it has adequate cash reserves to meet minimum exploration commitments, licence obligations and overheads for at least the next 12 months.
Directors pointed to strong capital inflows during the year, including US$11,4 million raised in the UK and US$5 million locally through the company’s Victoria Falls Stock Exchange secondary listing. After year-end, the group secured a further US$3,7 million in the UK and US$4,7 million in Zimbabwe from new and existing shareholders.
The funding will support the next phase of work at the Hillside Gold Project, which comprises the Bills Luck, Steenbok, Britain and Nightshift prospects.
“The directors have also assessed the expected credit losses on the loans to subsidiaries balance of US$37 195 000 (2024: US$21 655 000) using the 12-month expected credit loss model. The subsidiaries have no external debt and the loans to subsidiaries are only repayable on demand,” Kavango said in its 2025 annual report.
“The directors do not consider it likely that the loans would be called in the next 12 months, given the company has sufficient funding for that period and the directors plan to fund further exploration activities by the subsidiaries. As a result, no expected credit loss has been recognised.”
In Zimbabwe, Kavango operates five entities, led by Kavango Zimbabwe Holdings (Private) Limited, the parent company for its local operations. Other units cover mining, drilling and exploration activities, alongside a dormant investment vehicle.
- London firm targets bulk-mining in Zim
- Kavango eyes US$8m for Zim, Botswana operations
- Kavango confident of financial position
- Kavango makes major potential gold discovery
Keep Reading
In Botswana, the group has five subsidiaries, including licence-holding companies Shongwe Resources (Pty) Ltd, Ashmead Holdings (Pty) Ltd and Icon-Trading Company (Pty) Ltd, as well as exploration-focused Kavango Minerals (Pty) Ltd and Kanye Resources (Pty) Ltd.
