Kavango Resources PLC (LSE:KAV, OTC:KVGOF) has told investors it is in late-stage negotiations to secure an exclusive two-year option to acquire a gold exploration and development project in Zimbabwe.
It added, in a statement, that the company has so far completed extensive preliminary due diligence ahead of negotiating the option, including two field visits to the project area.
The area spans a number of contiguous gold claims over a 3.4-kilometre strike that previously supported historic high-grade underground mining and small-scale surface mining, but has never been explored using modern methods or technology.
The exclusive option period is expected to give Kavango time to perform unrestricted field due diligence, including exploration and drilling work.
To support the new project the company has been in parallel talks with a single investor concerning a possible £6mln equity funding, via a non-brokered direct share subscription.