MINING group RioZim is seeking an undisclosed amount of capital to restart its redundant Cam & Motor gold mine near Kadoma after nearly 50 years as it seeks to boost revenue inflows.
RioZim had expected to reopen the historical mine, a world class operation when it was shut down in 1968 having produced 150 tonnes in its entire life, in the second half of 2014 with a projected production of 4,000 ounces per month.
The group carried out trial mining of waste from the Motor site with underwhelming results and sought to set up new operations on the old mine’s ore bodies, with a new plant being designed and manufactured in China.
But in a cautionary statement released on Thursday RioZim said it would soon be in the market seeking capital to resuscitate the mine.
“The directors of RioZim Limited wish to advise all shareholders that the company intends to resuscitate mining activity at its Cam & Motor Mine, a project that the board and management anticipates will significantly improve the prospects of the business and may have an impact on the share price,” the company said.
“To this end, the company will seek funding from shareholders. The finer details of the proposed rights issue will be provided in due course.”
Before its 1968 closure, the mine engaged in underground mining but new initiatives are for an open cast operation.Advertisement