Bulawayo Mining Company (BMC), the wholly owned Namib Minerals subsidiary that operates the producing How Mine, has secured a US$5.0 million, 36-month non-dilutive term facility from Ecobank Zimbabwe Limited, following the bank’s own independent assessment, Mining Zimbabwe can report.
By Rudairo Mapuranga
The facility, which carries a base lending rate of 12% per annum minus a margin of 1% per annum, is subject to an acceptance fee of 1% of the total facility amount and a drawdown fee of 0.5% of the amount drawn down.
The term loan is designated to finance mining development, including hoist upgrades, expansion and maintenance of the milling plant, and drilling equipment at How Mine.
To secure the facility, How Mining Company has entered into a Security Agreement creating a security interest valued at US$7.5 million in favour of Ecobank over certain plant and machinery. A tripartite assignment agreement has also been executed with Fidelity Gold Refinery and Ecobank, providing for the assignment and routing of at least US$3 million monthly from gold sales through How Mining Company’s account held at Ecobank.
Strategic Impact on Redwing DFS
The strategic significance of the facility extends beyond How Mine. To date, Namib Minerals has funded the DFS technical programme for Redwing from internally generated cash flow. With How Mine’s capital works now financed on dedicated terms, the internally generated cash flow previously absorbed by those works is released and committed to funding the DFS technical programme through completion.
This creative funding structure enables the company to advance the Redwing restart without shareholder dilution, consistent with its previously communicated strategy of prioritising non-dilutive and minimally dilutive funding where possible.
Covenants and Terms
The Facility Agreement contains customary restrictive covenants applicable to How Mining Company and requires Ecobank’s prior consent for certain actions, including the incurrence of additional indebtedness, the acquisition of businesses or assets, and the repayment of shareholder loans or redemption of share capital.
The facility expires on May 31, 2029.
The company has also maintained a separate US$8.5 million facility with African Banking Corporation of Zimbabwe Limited, secured against mining leases and equipment, demonstrating its access to diversified funding sources.
The Ecobank facility strengthens Namib Minerals’ balance sheet and supports its disciplined, milestone-linked growth strategy. As the DFS technical programme progresses, the company will continue evaluating additional funding opportunities to advance Step 3 of the Redwing restart pathway, which includes resource definition drilling to enhance bankability.
