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Oliver Kazunga Senior Business Reporter
RIOZIM is seeking an undisclosed amount of money to resuscitate mining operations at Cam & Motor Mine that has been closed for more than 40 years.In a cautionary notice, RioZim said it will raise the funding from shareholders through a rights issue.
“Further to the cautionary notice . . . the company advised that it intends to resuscitate mining activity at its Cam & Motor Mine and seek funding from the shareholders in form of a Rights Issue,” it said. The company said negotiations for the rights issue were in progress.
“The finer details of the proposed rights issue will be provided in due course. Shareholders and the public are advised to continue exercising caution when dealing in the shares of RioZim Limited and to consult their professional advisors before dealing in the company’s shares,” said RioZim.
It is hoped that the resuscitation of the gold mine would significantly improve the prospects of the business and may have an impact on share price.
Cam & Motor Mine was once the largest producer of gold in Zimbabwe and produced in excess of 150 tonnes of the yellow metal in its entire life.
The mine was closed in 1968 with prices at $35 per ounce while it was operating at depths of 1,800 metres that the company deemed was no longer viable.
During that stage, the mine cut-off grade was 8 grammes per tonne and it was considered likely that there could be significant resources adjacent to the old workings that would now be economic to mine.
RioZim commissioned an exploration programme to search for the expected lower grade zones surrounding the mined ore bodies.
If re-opened, it is projected that production would be 4,000 ounces per month.
RioZim owns the Renco Mine in Masvingo, Empress Nickel Refinery and has a 22 percent shareholding in Murowa Diamonds.
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