Resources group RioZim Limited has secured overwhelming shareholder approval for a raft of resolutions aimed at unlocking fresh capital and disposing of selected assets as the embattled miner battles to stabilise operations amid mounting financial pressures.
Results of the company’s Extraordinary General Meeting (EGM), held virtually on 22 April, showed that all resolutions were passed with 100 percent shareholder support, including proposals to dispose of investment properties, raise new financing and transfer certain mining claims.
Among the key resolutions approved was authority for the board to secure a future loan facility of up to US$35 million, backed by company assets of equivalent value. Shareholders also approved the disposal of non-core investment property in Nyanga and Newlands for a combined consideration of about US$419 000.
The EGM further endorsed the disposal of selected mining claims and the transfer of diamond mining interests to RMZ Murowa (Private) Limited in exchange for the waiver of a US$60,8 million debt owed by RioZim.
Shareholders also ratified the disposal of property held in Msasa by a subsidiary for US$1,6 million to an unrelated third party.
The approvals come at a critical time for the Zimbabwe Stock Exchange-listed miner, which has been grappling with severe liquidity constraints, operational disruptions and growing pressure from creditors and minority shareholders.
In recent months, RioZim has faced repeated attempts to place the company under corporate rescue, with applicants arguing that the group is financially distressed and unable to meet its obligations. Court papers filed in the High Court indicated that the miner’s liabilities exceeded its assets, while auditors raised concern over its ability to continue operating as a going concern.
A fresh corporate rescue application lodged last month also sought to halt the EGM, arguing that proposed asset disposals should not proceed while rescue proceedings were pending.
The dispute has heightened concern over the future of one of Zimbabwe’s oldest mining groups, whose operations span gold, chrome, coal and diamonds.
Workers and unions have previously warned that the company’s financial difficulties have affected salaries and livelihoods, with some operations placed under care and maintenance due to power shortages, equipment breakdowns and lack of working capital.
However, RioZim’s board maintains that the asset disposals and financing initiatives form part of broader efforts to restructure the business, extinguish debt and recapitalise remaining mining assets.