Struggling miner RioZim has announced plans to sell a series of assets, including its 22.2% stake in Murowa Diamonds, as part of a strategy to tackle a US$76.5 million debt, Mining Zimbabwe can report.
By Ryan Chigoche
This was disclosed in a notice on the Zimbabwe Stock Exchange (ZSE), where the company is listed.
The filing states that RioZim will also sell four diamond claims valued at US$4.6 million, along with other smaller mining claims and property assets.
These include the One-Step gold claim in Mhondoro, the largely unexplored Mtandahwe claim in Chipinge, and land holdings in Nyanga, Newlands, and Msasa.
The sale targets a US$60.8 million liability owed to major shareholder RZM Murowa.
RioZim had previously explored large-scale funding options, including a possible sale of the entire group, but investors were unable to meet the scale required.
“Over 15 potential investors have expressed interest in supporting the company through a mix of equity and debt financing. Initially, the approach focused on group-level funding, but the size of the required injection proved too large for most to commit fully,” the notice states.
In addition to selling assets, RioZim is seeking approval to borrow US$35 million, secured against its remaining assets, to finance working capital and restart operations without issuing new shares.
The company operates the Renco, Dalny, and Cam & Motor gold mines, with operations at Cam & Motor particularly affected after the transition from oxide to refractory sulphide ore. The BIOX plant, installed in 2019 to process this more complex ore, has remained underutilised due to a lack of funding for necessary upgrades.
