Online Reporter
Zimpapers Business Hub
RIOZIM LIMITED has indicated that negotiations with a potential investor have reached an advanced stage, a development anticipated to see the injection of an initial US$20 million into the mining group’s working capital and the acquisition of a controlling stake in the company.
This comes as the Zimbabwe Stock Exchange-listed resources firm saw its gold production for the year ended December 31, 2024, slump by 54 percent to 428kg from 940kg in the prior year, weighed down by persistent plant reliability issues and constrained power supply at its flagship operations—Cam & Motor and Renco mines.
Last week, RioZim, which has interests in gold, diamonds, coal and nickel, said negotiations with the investor were progressing positively.
“The Directors of RioZim Limited (the ‘Company’) wish to advise its shareholders and the investing public that, further to the cautionary announcement dated 4th March 2025, the major shareholders are now at an advanced stage in negotiating with the potential investor, who will inject an initial amount of Twenty Million United States Dollars (USD20,000,000.00) into the working capital of the Company, through an appropriate financial instrument whilst completing a purchase of the majority shares of the Company,” read part of the statement.
The transaction, which has attracted strong interest from the market, remains subject to the fulfilment of key conditions, including due diligence, the signing of Sale and Purchase Agreements, and the obtaining of shareholder and regulatory approvals.
“Upon conclusion of the Transaction, the investor will follow the relevant rules of the Zimbabwe Stock Exchange for making a mandatory offer to the remaining minority shareholders to purchase their shares in the Company,” the statement added.
