Great Dyke partners Fossil Mines

Online Reporter

PLATINUM miner Great Dyke Investments (GDI) has partnered local company Fossil Mines, in a deal expected to boost the company’s operations in Darwendale.

In a statement, GDI said Fossil Mines will invest US$30 million.

“In accordance with the agreed terms, Fossil shall invest an amount of US$30 million through a combination of cash and services into the company in exchange for a 4,4 percent stake, valuing the company at US$680 million.

“As stated the investment consists of a cash investment as well as providing certain defined engineering, procurement and construction services with respect to the Darwendale Project. Such a transaction with another local Zimbabwean partner shows the high level of interest in the project,” GDI said.

GDI’s vice-chairman, Mr Igor Higer, said that the transaction with Fossil is fully in line with GDI’s strategy for financial closure of a syndicated funding up to US$665 million led by African Export-Import Bank (Afreximbank). The successful arrangement of the investment from Fossil is an important milestone of the GDI funding roadmap for 2020/21.

Fossil’s owner, Mr Obey Chimuka, said that the partnership marks a significant achievement.

GDI, which is a joint venture between Russia’s Vi Holding and Zimbabwe Lindela Mining Ventures, is a high priority project in the economic and diplomatic ties between Harare and Moscow.

According to the project’s timelines, first mine production is expected to commence in early 2021 followed by concentrate production in 2022.