Shareholders of resources group, RioZim today approved its bid to raise $10 million through a rights offer to reopen the Cam and Motoring gold mine near Kadoma at an extraordinary general meeting.
The directors last month proposed the rights offer to reopen the historic mine, now viewed as key to the group’s revival.
The mine was a cash cow until it was shut down nearly 50 years ago, having produced 150 tonnes of gold in its entire life until its closure in 1968.
“Shareholders unanimously voted to approve the rights. All resolutions were approved at the meeting,” said an official who declined to be identified because he had no authority to speak to the press.
RioZim had expected to reopen the mine in the second half of 2014 with a projected production of 4 000 ounces per month.
Cash from the rights offer will be used to buy equipment, being designed and manufactured in China for the mine, which will run as an open cast operation.
GEM RioZim Investment, which holds 24.97 percent stake in RioZim, will underwrite the transaction. It has also injected $700 000 to start-up the project while the rights offer process is underway.
On Tuesday, RioZim said it will likely report a bigger loss for the full year to December citing lower gold production at its main Renco mine, weak mineral prices and poor matte supplies at its Empress Nickel Refinery.
The group posted an after tax loss of $7.4 million with revenue down 39 percent to $39.3 million for the six months to June.-The Source
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