RioZim seeks US$39,4m to clear debt, revive operations

Resources group RioZim Limited is seeking to raise US$39,4 million through a mix of borrowing and asset disposals as it moves to extinguish debt and recapitalise its remaining mining assets.

The capital-raising plan follows a recent High Court decision dismissing an application by the Zimbabwe Diamond and Allied Minerals Workers Union to place the company under corporate rescue.

The ruling has cleared the way for the resources firm to pursue a turnaround strategy after years of operational challenges driven by rising production costs, persistent power cuts, exchange-rate volatility and frequent plant breakdowns, among others.

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