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Pambili’s Golden Valley Sparks International Investor Interest

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Pambili’s Golden Valley Sparks International Investor Interest

Toronto Stock Exchange-listed mining and exploration junior Pambili Natural Resources Corporation has set the stage for a significant leap in its development trajectory with the announcement of a non-brokered private placement of up to 2 million units, generating proceeds of C$100,000.

Rudairo Mapuranga

The move marks a pivotal moment for Pambili as it seeks to bolster its operations, particularly following the acquisition of the Golden Valley mine in Zimbabwe.

The Offering, comprising Units priced at $0.05 each, presents an enticing opportunity for investors to engage with Pambili’s growth journey. Each Unit encompasses one common share and one warrant, with the latter offering the holder the right to acquire one common share at a predetermined price within a specified timeframe. This strategic initiative is poised to infuse Pambili with the necessary financial impetus to advance its objectives.

While the participation of certain directors or officers in the Offering constitutes a “related party transaction,” Pambili is leveraging exemptions to streamline the process, ensuring compliance with regulatory standards while maintaining momentum.

The company’s CEO, Jon Harris, emphasizes the significance of this Offering as it not only garners support from insiders but also attracts attention from international investors, underlining the growing global interest in Pambili’s endeavors.

“Although the Offering is backed by insiders, there is strong support from new international investors who have been following the Pambili story with interest since our previously announced acquisition of the Golden Valley mine in Zimbabwe. Their participation in the Offering is an endorsement of our approach to provide attractive shareholder returns through the consolidation of underexplored and underdeveloped gold projects in Zimbabwe,” Harris said.

The infusion of capital from this Offering is earmarked for general working capital, underscoring Pambili’s commitment to prudent financial management and strategic allocation of resources. The Corporation’s focus on consolidating underexplored and underdeveloped gold projects in Zimbabwe aligns with its overarching objective of delivering sustainable shareholder value.

Pambili’s journey, characterized by strategic acquisitions and prudent financial management, continues to capture the imagination of investors worldwide. The allure of the Golden Valley mine, coupled with Pambili’s vision and execution prowess, positions the Corporation as a compelling investment proposition in the ever-evolving natural resources landscape. As Pambili harnesses the support of both insiders and international investors, it embarks on a transformative phase poised to unlock new avenues of growth and prosperity.

PS: This is not the Patchway based Golden Valley mine owned by the John Mack Company.

Zimbabwe rakes in US$20 billion in mineral exports

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Zimbabwe rakes in US$20 billion in mineral exports

The Zimbabwe mining industry in the last five years realized a total of US$20 billion from mineral exports, the Minister of Mines and Mining Development, Hon Zhemu Soda, announced.

Rudairo Mapuranga

Speaking at the Kamativi Mining Company (KMC)‘s spodumene mine and phase one processing plant official commissioning by President Emmerson Mnangagwa, Minister Soda said Zimbabwe’s mining industry is without a doubt a key industry that contributes significantly to the country’s Gross Domestic Product.

“A cumulative of more than USD 20 billion has also been realized from the export of various minerals that include gold, platinum, and lithium from 2018 to date. It is pleasing to announce that despite the regulations that were instituted to control the export of lithium minerals in Zimbabwe, the stakeholders in the subsector were able to surpass their set target for exports,” Minister Soda said.

In 2023, according to Minister Soda, lithium exports, despite the US$12 billion vision by 2023, stimulating that lithium will fetch half a billion annually, the lithium sector realized US$600 million in exports.

“Lithium exports were set at half a billion US dollars but a total of over USD 600 million was realized from the export of Spodumene, Petalite, and Lepidolite despite export bans that were effected in 2023, underscoring the importance of these lithium minerals to our economy,” Minister Soda said.

According to Hon. Soda, the Ministry of Mines and Mining Development will continue to work on strategies to help the country realize more gains from its mineral resources. These strategies include coming up with Special Purpose Vehicles for mineral exploration, new mine openings, re-capacitation of dormant mines, expansion of current mining projects, curbing mineral leakages, increased capacity utilization, and ultimately value addition and beneficiation across the whole sector.

Kamativi revenue should benefit all Zimbabweans – Mnangagwa

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Kamativi revenue should benefit all Zimbabweans – Mnangagwa

President Emmerson Mnangagwa has emphasized that the opening of the Kamativi Lithium mine should result in a win-win approach between the state and investors.

Speaking at the Kamativi Mining Company (KMC)‘s spodumene mine and phase one processing plant commissioning ceremony held on Friday at Kamativi, the President said the development of the mine will lead to a better future for local communities and the environment due to government engagement with the mine.

“My government remains ready to work closely with Kamativi Mining Company (KMC) to ensure our collective success. The revenue accruing from mining assets should benefit all of us—shareholders, investors, management and staff, as well as the generality of the people of Zimbabwe,” President Mnangagwa said.

President Mnangagwa stated that the government remains ready to work very hard and is collaborating closely with collaborative mining companies to ensure collective success in the country.

“The revenue and profits from this enterprise should benefit us all.

“No exploitation of the investor, no exploitation of the country in which you invest. Zimbabwe is in a situation where the mining industry must ensure that the investor is satisfied. The country in which you invest must also benefit. Zimbabwe is open for business,” the President said.

Speaking at the same event, KMC’s majority shareholder Yahua Group Chairman, Mr Meng Yan, emphasized that China-Zimbabwe relations remain anchored in the operational principle of consultation, collaboration, construction, shared prosperity, and win-win cooperation.

“Through strict adherence to the laws and regulations of Zimbabwe, we continue to observe operational safety, striving for excellence in quality, efficiency, and environmental protection.
With the support of the Government of Zimbabwe, we will develop the Kamativi mine into a paragon of modernity, technological prowess, safety, environmental stewardship, global renown, and sustainable development.

The Yahua Group aims to make an indelible contribution towards Zimbabwe’s socio-economic development and achieve Vision 2030,” Meng Yan said.

Speaking to Mining Zimbabwe on the sidelines of the event Matabeleland Senator, expressed hope that the people would benefit from the revenue generated from the operations of the mine.

“Well, this is a very important project, a very critical project in our district. This demonstrates how rich our country is, and this project will be a milestone in terms of improving the lifestyle of our communities, enhancing our fiscal position, upgrading our roads and infrastructure, improving the quality of education, and enhancing all social amenities. So we hope that the money generated here will benefit the locals,” Tshabangu said.

KMC to process 2.3 million tonnes of spodumene

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KMC to process 2.3 million tonnes of spodumene

Kamativi Mining Company (KMC) aims to process 2.3 million tonnes of spodumene ore per annum through its first-phase processing plant and the upcoming second-phase processing plant, slated to commence production in July of this year.

President Emmerson Mnangagwa officially commissioned the first phase processing plant, which has a capacity to process 300 thousand tonnes, yielding 50 thousand tonnes of concentrates, with the second phase expected to add another 300 thousand tonnes of concentrates, bringing the project’s total to 350 thousand tonnes of concentrates.

Speaking at the official commissioning, Yahua Group Chairman Mr Meng Yan stated that groundwork for resource exploration and beneficiation studies had been laid since October 2022. In December of the same year, a development plan was formulated to construct the mine in two phases. Subsequently, the Yahua Group allocated a total investment of US$249 million towards building a two-phased spodumene processing plant with a combined capacity of 2.3 million tonnes per annum.

“While construction of the Phase One plant began in March 2023, equipment installation was completed and commissioned in October of the same year. Your Excellency, construction of Phase Two of the processing plant commenced in July 2023. I am delighted to report that all works are progressing well and on schedule. We anticipate completion and commencement of production in July of this year.

“Thereafter, we expect an annual processing capacity of 2.3 million tonnes of lithium ore. This achievement stands as a milestone, a tangible testament to the enduring friendship and cooperation between China and Zimbabwe.

“During the resuscitation and development of Kamativi mine, there has been remarkable seamless integration among stakeholders from both China and Zimbabwe, overcoming myriad challenges through close cooperation and collaboration. Consequently, the unwavering support and assistance from concerned stakeholders across the spectrum have been invaluable, fostering a strong guarantee for the punctual commissioning of the project,” he said.

Imagine the response if RBZ had said “Now we transact in gold”

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Imagine the response if RBZ had said “Now we transact in gold”

It is a well-known fact that the “Safe Haven” for any wealth for investors is Gold and luckily Zimbabwe has gold, plenty of it. Unlike other volatile minerals, Gold serves as a reliable store of wealth, consistently maintaining its value throughout history.

Unlike paper currencies, which can lose value due to inflation or economic turmoil, gold’s intrinsic worth endures and that has been proven for centuries.

In the case of Zimbabwe, our Motherland, we have our local currencies which haven’t been lucky leading to the transacting public preferring a much more stable currency (the US$).

Even after the introduction of the new currency – ZiG, by the Reserve Bank of Zimbabwe (RBZ) Governor, the US$ will likely remain the currency of choice since one still has to sell the new currency to buy the greenback to pay for necessities like fuel. This means the illegal Money-changing business will go on as motorists frequently and quickly need to get USD for travel.

As the ZiG (and or the structured currency) introduction debates rage on what must not be ignored is the fact that people have seen multiple new currency introductions and these have always had the same fate.

Whilst the new governor is doing all he can to instil confidence, the public has been here before so it takes more than just paper money to convince Zimbabweans that the ZiG will work.

Our Paper money and the so-called “transfer” do not have a successful track record therefore the public confidence level may be low. Confidence level however would have been much higher if the country was introduced to something new and solid, GOLD. How, one may ask?

The government can introduce smaller denominated gold coins ranging from 1 cent to 20 dollars which have gold worth the currency displayed. These should be pegged with the going rate of the international market Gold price.

Public reaction to an actual gold currency would have been a lot different if the governor had told the nation “Now we transact in gold”. Such an announcement would have instilled instant and unquestionable confidence – who wouldn’t want to have gold in their possession? Fuel stations would accept the currency because it’s gold! Even Gogo from Chirasavana would love to have coin because “It’s Gold, it’s valuable!

Even the appetite to have the hard US$ currency would likely die down.

Currently, Zimbabwe has higher-denominated gold coins which are minted by Fidelity Gold Refinery (FGR). These have performed extremely well.  Their price is determined by the international market rate for an ounce of gold, plus five per cent for the cost of producing the coin.

However, for the country to have millions of coins containing gold in circulation, we need gold, lots and lots of it. It may take years to achieve such a fit however stability is guaranteed, history proves it.

One may ask what about the ZiG digital tokens and my answer is as long as Mbuya Goto from Makande or Gogo Sithole from Lupane, or Hwindi plying Mbare to Town route have never transacted or used them they have no effect whatsoever on the broader economy of Zimbabwe.

Coins are heavy one may say, BANK them!

This is an opinion piece

Zimplats reducing its workforce by 1%

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Zimplats reducing its workforce by 1%

Zimplats is reducing its 8000-strong workforce by 1% as the Platinum miner moves to implement survival tactics as falling PGM prices bite.

Speaking at the 7th edition of the PGMs Industry Day Conference in Johannesburg on Wednesday, ZIMPLATS Chief Executive Officer (CEO) Alex Mhembere said:

“Through these current headwinds, we are only going to reduce our people by 1% of the total labour complement of 8,000 people that we have,” Mhembere announced.

He said ZIMPLATS wants to maintain its yearly output of around 600,000 PGM ounces per year and was targeting improving productivity as a way of containing costs.

He said that Zimplats would reduce spending on its 10-year $1.8 billion expansion project announced in 2021 and adopt a more cost-effective approach in the upcoming financial year, beginning in July.

“We’re going to spend less. We will only be focusing on our replacement capital expenditure, stay-in-business capex and very little on growth capex,” Mhembere said.

Meanwhile, some workers at the Platinum miner have reported to Mining Zimbabwe that salaries were being cut by 10%. The platinum miner is yet to respond to these claims.

Mnangagwa commissions the Pickstone underground project

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Mnangagwa commissions the Pickstone underground project

President Emmerson Mnangagwa commissioned the Pickstone Peerless Gold Mine underground project yesterday, which is projected to produce an average of 100 kgs a month, up from the 40 kgs the mine used to produce from its open-pit mine.

The mine’s transition from open-pit mining to underground mining was encouraged by improved grades averaging 3 grams/tonne, up from 1.8 grams/tonne. The mine invested over US$50 million to build the mine to its current state, with a further US$27 million committed towards expanding the project.

The Pickstone underground project has created 550 new jobs with the potential to create a similar number by transitioning its open-pit mine to underground, with feasibility studies currently underway.

Speaking to Mining Zimbabwe on the sidelines of the mine’s official opening, Zimbabwe Miners Federation (ZMF) Mashonaland West Province Chairman Timothy Chizuzu said the resilience shown by Dallaglio, that mines are not found but built, encourages ASM to develop their mines and cease to mine blindly.

Chizuzu said ASM should adopt initiatives for the development and growth of the small-scale and artisanal mining sector through formalization and standardization to maximize production by emulating Dallaglio’s strategies.

“We are here as small-scale miners learning from our big brothers. As small-scale miners, we see the importance of planning and growing our mines to be professional and commercial. We need to upscale our mines by investing in exploration,” Chizuzu said.

The Deputy Minister of Mines and Mining Development, whose mandate is the growth and development of the small-scale mining sector in Zimbabwe, Eng Polite Kambamura, encouraged miners to mine sustainably to enable future generations to benefit.

“The old miners mined this mine sustainably; that is why the current investor was able to resuscitate this mine because it was mined in a sustainable manner.

“So, we urge other miners to mine sustainably so that future generations can also benefit. In the future, a grade of 0.5 grams per tonne might also be sustainable,” Kambamura said.

Blanket Mine’s production increased by 6%, gold sales up 17%

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Blanket Mine’s production increased by 6%, gold sales up 17%

Caledonia Mining Corporation, a gold-focused producer listed on the Victoria Falls Stock Exchange, reported that its Blanket Mine in Gwanda recorded a 6% increase in production during the first quarter of 2024 compared to the same quarter in 2023. Gold sales also increased by 17% in the first quarter of 2024 compared to the first quarter of 2023.

According to Caledonia CEO Mark Learmonth, the increased production was achieved despite 8 fewer production days (a 9.3% reduction) compared to the first quarter of 2023 due to the production cut-off for gold delivery set on March 21, 2024.

Learmonth stated that gold production at Blanket was 17,050 ounces during the first quarter of 2024, representing a 6% increase over the first quarter of 2023. Blanket sold 18,450 ounces during the quarter, a 17% increase from the first quarter of 2023 when 15,797 ounces were sold.

“I am pleased that production at Blanket has started strongly in 2024 with over 17,000 ounces produced in the quarter, despite having 8 fewer production days compared to Q1 2023, which is an excellent result. With current high gold prices, it was good to see our gold sales increase by 17% in Q1 2024 compared to Q1 2023,” said Learmonth.

“Our significant investment in Blanket over the past seven years and completion of the Central Shaft has nearly doubled production, extended the mine life, and allowed the restart of underground exploration in 2023. We continue to see Blanket as a solid foundation for growth as we pursue our strategy to become a multi-asset gold producer,” Learmonth added.

Mapinga Mines to Energy Industrial Park Construction Begins in June

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Mapinga Mines to Energy Industrial Park Construction Begins in June

In an endeavour to ensure the country benefits from the green revolution by beneficiating and value-adding the country’s minerals, especially lithium, the government has announced that construction for Phase 1 of the Mapinga Mines to Energy Industrial Park will commence in June.

The Mapinga Mines to Energy Park aims to bridge the gap between beneficiation and value addition by creating a manufacturing industry for commodities like lithium batteries, electric vehicles, and others.

This industrial park is a lithium value addition and beneficiation project that will include the construction of a coking plant with a capacity of 1.2 million metric tonnes of coke and 130,000 metric tonnes of lithium salt per annum. Additionally, it will involve the construction of two 300-megawatt power stations, a graphite processing plant, a nickel-chromium alloy smelter, and a nickel sulfate plant, supported by power supply and logistics.

According to Minister of Information, Honorable J. Muswere, Cabinet was briefed by Vice President Retired General Constantine Guvheya Chiwenga, Chairman of the Inter-Ministerial Committee on the Establishment of the Mines to Energy Industrial Park in Mapinga. He stated that the industrial park, spanning over 500 hectares, will be implemented in phases, with Phase 1 set to begin in June 2024. The government will hold a shareholding in the project.

“Honorable C.G.D.N. Chiwenga briefed Cabinet as Chairman of the Inter-Ministerial Committee on the Establishment of the Mines to Energy Industrial Park in Mapinga. The industrial park, covering 500 hectares, will be implemented in phases, with Phase 1 scheduled to commence in June 2024. The government will have a shareholding in this project,” said Hon. Muswere.

Prospect Acquires 85% of the advanced copper-cobalt project in Zambia

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Prospect Acquires 85% of the advanced copper-cobalt project in Zambia

Prospect Resources Limited has acquired an 85% interest in the Mumbezhi Copper Project in Zambia, solidifying its position in the battery and electrification mineral sector in Africa.

Patricia Rwafa

Managing Director and CEO Sam Hosack highlighted the significance of this acquisition, emphasizing the project’s potential for a world-class, long-life, open-pit copper-cobalt operation.

Under the agreements, Prospect will pay approximately US$5.5 million in cash and US$1 million in scrip to Global Development Cooperation Consulting Zambia Limited (GDC) for the acquisition. Additionally, Prospect will settle approximately $1 million in scrip plus options to Orpheus Uranium Limited (ORP) for select exploration costs on Mumbezhi, aiming to withdraw all legal claims and gain access to historical geological and mining data.

Hosack expressed optimism about the project’s prospects, citing the extensive drilling completed by ORP and the favorable metallurgy in the region. He noted Zambia’s strong history in the resources sector, particularly for copper, highlighting the existing infrastructure and government support.

The Mumbezhi Copper Project is strategically located near established copper mines like Sentinel and Kansanshi, providing Prospect with a well-capitalized opportunity to advance exploration rapidly. Hosack indicated that this acquisition aligns with Prospect’s strategy to diversify its portfolio amid subdued lithium markets, positioning Mumbezhi as a potential flagship project with substantial exploration upside.

Commenting on the development, Prospect’s Managing Director and CEO, Sam Hosack said,

“The purchase agreements we have struck for the highly prospective Mumbezhi Copper Project which includes the Nyungu deposits, represent a significant milestone, which extends our reach into the battery and electrification mineral sector in Africa,”

‘The Nyungu deposits have all the potential ingredients of a world-class, long-life, open pittable, copper-cobalt mining and processing operation, with regionally favourable metallurgy and significant exploration upside. Zambia is also a leading jurisdiction to explore and develop mining operations in sub-Saharan Africa, having a long-standing history in the resources sector, particularly for copper. I personally have spent over five years in this part of Zambia during my career and have firsthand experience of the excellent infrastructure and strong support from both the government and community, with major companies like Barrick Gold, First Quantum Minerals and KoBold Metals already calling it home,”

The Project also offers excellent potential to deliver significant new, high-value copper-cobalt discoveries. Subject to the satisfaction of all relevant conditions precedent, this acquisition is set to deliver a high-quality, advanced copper exploration play into our portfolio – which is an exciting proposition.”

“The timing of this push into copper is ideal as markets for lithium remain subdued. Our current drilling program at Step Aside is nearing completion and the acquisition of 100% of Omaruru gives us much more flexibility with cash spend, allowing a real focus on aggressively drilling Mumbezhi. We remain committed to our strategy and think the long term potential of lithium remains robust but we are excited to add copper to our portfolio as it provides diversification and this new project holds the potential to rapidly develop into the flagship project we have been seeking.”

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