RioZim Limited is seeking shareholder approval to dispose Renco Mine for at least US$35 million, according to an abridged circular issued Monday.
Shareholders will vote at a virtual extraordinary general meeting (EGM) on 20 October.
The company described the proposed sale of the gold mine as part of “a broader balance-sheet restructuring programme”.
RioZim said it would apply the proceeds “primarily towards debt repayment, settlement of creditors and stabilisation of its remaining mining operations”.
Renco began operating in the early 1980s.
The company says it has received “limited capital investment over recent decades”.
Management estimates that about US$20 million would be needed to restore it. The board considers self-funding “neither commercially prudent nor financially feasible”.
An independent valuation splits the price into six parts. Plant, machinery and equipment account for US$14.4 million and mining rights for US$6.0 million.
Land and buildings add US$4.8 million, inventory US$4.4 million, trade receivables US$3.8 million and assumed liabilities US$1.7 million. The buyer is described only as “an unrelated third-party purchaser”.
RioZim reported a net current liability position of US$51.0 million at 31 May 2026. On a pro forma basis, interest-bearing loans fall from US$37.7 million to US$12.7 million. Cash rises from US$3.2 million to US$17.1 million. Equity attributable to the parent stays negative, improving from minus US$13.1 million to minus US$3.4 million.
The directors said RioZim would have “adequate working capital to support its continuing operations” after the sale. They recommend that shareholders vote in favour. Switzview Investments, the independent financial adviser, considers the terms “fair and reasonable”. Estimated transaction costs total US$65,000.