Zimbabwe-listed mining company RioZim is planning a major asset disposal programme as it moves to settle a US$76.5 million debt burden.
The miner says it will sell its 22.2 percent stake in Murowa Diamonds, along with selected mining claims and properties across the country, in a bid to reduce liabilities.
The largest portion of the debt — about US$60.8 million — is owed to key shareholder RZM Murowa. To offset this, RioZim will surrender its Murowa stake, valued at nearly US$24 million, as well as four diamond claims worth over US$4.6 million.
The company is also offloading non-core assets, including the One-Step gold claim in Mhondoro and the largely unexplored Mtandahwe claim in Chipinge, which has potential for copper and tungsten. Property assets in Nyanga, Newlands and Msasa are also earmarked for sale.
After failing to secure a single investor to take over the entire group, RioZim says it is now breaking up its assets into smaller investment packages to attract buyers. More than 15 potential investors have expressed interest in a mix of equity and debt financing.
In addition, the company is seeking approval to borrow up to US$35 million, using its remaining mining assets as collateral. The loan is expected to support working capital and help revive operations.
RioZim currently operates the Renco, Dalny and Cam and Motor gold mines, which have all been facing operational challenges.
At Cam and Motor Mine, production has been affected by a shift to harder-to-process sulphide ore, which requires BIOX technology. Although a BIOX plant was installed in 2019, the company has struggled to raise the additional funding needed to fully optimise the system.
