DEBT-LADEN miner, RioZim Limited, is on the verge of sealing major transactions that could reshape its financial future, with directors revealing that negotiations are in their final stages.
In April, the Zimbabwe Diamond and Allied Minerals Workers Union made an application at the High Court of Zimbabwe to place RioZim under corporate rescue, citing deep insolvency and governance failures.
The action was taken as the firm was saddled with debts amounting to US$191 million.
“The directors of RioZim Limited wish to advise its shareholders and the investing public that further to the cautionary statement dated 29th May 2025, the company is involved in the final stages of negotiations of transactions that will have a material effect on the company’s balance sheet,” RioZim said in a new statement.
“These transactions may involve the disposal of some of the company’s mining and non-core assets. The conclusion of the negotiations is imminent, which will resolve the company’s financial and operational challenges.”
In the May 29, 2025, statement, RioZim revealed it was in talks with a potential investor to secure working capital of US$20 million to resuscitate its dwindling operations.
“The negotiations between the major shareholders and other potential investors for a purchase of the majority shares of the company are still ongoing, with the due diligence process continuing at an advanced level,” RioZim said.
“In respect of the corporate rescue application, all legal papers have been filed and a set down date is awaited. Accordingly, shareholders and the investing public are advised to exercise caution when dealing with the company’s securities.”
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RioZim’s poor liquidity generation was due to soaring direct costs associated with producing its minerals, power cuts that limited production scalability, exchange rate volatility, plant breakdowns that caused a lot of downtime and poor management decisions.
