RioZim Limited has dismissed fresh attempts by a minority shareholder to place the mining group under corporate rescue, describing allegations of financial distress as “bare and unsubstantiated”, even as the company pushes ahead with an aggressive restructuring and recapitalisation programme approved by shareholders recently.
In a cautionary announcement issued yesterday, the Zimbabwe Stock Exchange-listed miner confirmed that minority shareholder Tendai Rwodzi had filed a High Court application seeking to place the company under corporate rescue.
The company said Rwodzi, who holds 1 500 ordinary shares representing 0.0012 percent of RioZim’s issued share capital, alleged that the miner was facing severe liquidity constraints and risked insolvency within the next six months.
However, RioZim’s board strongly rejected the claims.
“These are bare and unsubstantiated allegations and the company will defend the application by filing the necessary opposing papers within the following days,” the company said in the statement.
RioZim argued that a similar application filed in 2025 by the Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) had already been dismissed by both the High Court and Supreme Court.
“Of note is that the current application filed by Mr Rwodzi suffers from the same, if not worse, technical and substantive deficiencies as the previous application,” the company said.
The latest legal challenge comes just weeks after shareholders overwhelmingly endorsed a series of measures aimed at stabilising the embattled resources group.
At an Extraordinary General Meeting held on April 22, shareholders approved resolutions allowing the board to raise up to US$35 million in financing backed by company assets, dispose of selected non-core properties and restructure mining interests.
Among the approved transactions was the disposal of investment properties in Nyanga and Newlands valued at approximately US$419 000, as well as the sale of property in Msasa for US$1,6 million.
Shareholders also approved 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.
The approvals were seen as a critical step in efforts to recapitalise the group, which has faced mounting operational and financial difficulties in recent years.
RioZim’s operations, spanning gold, coal, chrome and diamonds, have been affected by power shortages, ageing equipment and shortages of working capital. Some units have reportedly been placed under care and maintenance, while workers and unions have previously raised concerns over delayed salaries and deteriorating conditions.