RioZim Limited is proposing to dispose of Renco Mine as a going concern for not less than US$35 million as part of a broader balance-sheet restructuring programme aimed at reducing indebtedness, improving liquidity and preserving long-term shareholder value.
According to an abridged circular dated 28 September 2026, shareholders will be called to a virtual Extraordinary General Meeting (EGM) on 20 October 2026 to consider and approve the disposal. The mine, which will be sold as a Cash-Generating Unit to an unrelated third-party purchaser, has been independently valued at US$35 million, comprising US$6 million for mining lease and claims, US$4.78 million for land and buildings, US$14.4 million for plant, machinery and equipment, US$3.75 million for trade receivables, US$4.38 million for inventory and US$1.7 million for assumption of liabilities.
RioZim said Renco Mine, which commenced operations in the early 1980s, has received limited capital investment in recent decades and is currently constrained by ageing underground infrastructure, obsolete processing equipment, inadequate mine development and limited exploration. The company’s management estimates that about US$20 million would be required to rehabilitate the mine and restore it to sustainable production, which the Board considers neither commercially prudent nor financially feasible given the company’s current position. As at 31 May 2026, RioZim had a net current liability position of US$51 million.
The company said the disposal will materially reduce the company’s debt burden, improve liquidity and financial flexibility, strengthen the balance sheet, protect its remaining gold-producing assets from creditor pressure and allow management to focus capital allocation on more economically viable operations. Proceeds of approximately US$35 million will be applied primarily towards debt repayment and settlement of creditors, with a portion used to improve working capital and stabilise continuing operations, including Cam & Motor Mine, while any balance will provide financial flexibility for operational requirements and future growth opportunities.
The transaction is subject to shareholder approval at the EGM and receipt of all necessary regulatory approvals, and will not impact RioZim’s shareholding structure. The EGM notice was published on 28 September 2026, with the voting record date set for 16 October 2026, proxy lodgement by 19 October and results to be published on 27 October. Transaction costs are estimated at US$65,000.
On litigation, the circular notes that a corporate-rescue application filed by the Zimbabwe Diamond and Allied Minerals Workers Union in April 2025 was dismissed by the High Court and Supreme Court, while a separate rescue application filed by minority shareholder Tendai Rwodzi in April 2026, challenging resolutions passed at the April 2026 EGM, is being defended by the company. Based on legal advice, the company believes the pending litigation does not prevent the transaction. The company consider the disposal to be in the best interests of all shareholders and recommend voting in favour, with RZM Murowa precluded from voting on the resolution as a related party. Independent financial advisor Switzview Investments has opined that the terms are fair and reasonable to shareholders.
