adminUS$47 million, US$35 million would be raised through a new equity partner, a local investment firm. The other US$12 million would be raised through a rights issue.
“As we indicated last week, I can confirm that we have secured a partner and we intend to raise US$47 million through private placement and rights offer,” said Mr Sachikonye.
A source close to the deal said the partner was a local investment firm but with strong foreign links, particularly with Russia and Ukraine.
According to the source, the investment firm has business interests in the country in the mining, energy and petroleum sectors.
The rescue plan comes at a time when a number of banks owed by RioZim have made a court application for a judicial management order against the company.
Mr Sachikonye said banks, which are owed US$26 million, had made the application but some of them, owed about US$31 million, were willing to negotiate settlement terms.
“We are hoping to pay off the banks that applied for judicial management immediately after raising the funds through these initiatives,” he said.
This means that the remaining US$21 million could be used to recapitalise the mining company.
Last week, RioZim said it had accepted a new offer “that would provide sufficient funds to solve the company’s indebtedness and the way forward”.
Mr Sachikonye could not comment on the size of the stake to be acquired by the new shareholder, although indications are clear that the partner will become the majority shareholder.
Last year, an EGM was convened to consider a US$59 million rights offer and also present to shareholders a proposed debt retirement strategy. But 47 percent of the shareholders rejected the proposal while 32 percent voted in favour.
On the debt equity swap, 31 percent of shareholders endorsed the proposal, which was rejected by 46 percent of the other shareholders.
Of the US$59 million RioZim wanted to
raise, US$29 million was meant to clear debts, US$11,6 million for working capital, US$13,6 million for capital projects while US$13 million was for recapitalisation.
About US$13,96 million had been earmarked for Renco, US$4,22 million for Empress Nickel Refinery and US$4,87 million for Cam & Motor Mine.
Online Reporter
- Herald
- July 31, 2026
- 55 views
Economy: Growth signs visible
Martin Kadzere Senior Business Reporter ZIMBABWE has made significant progress towards achieving upper-middle-income status, with the country’s Gross National Income per capita growing by 84 percent since 2021, Finance, Economic…
