11By Nigel PfundeHarare- ZIMBABWE’S commercial banking sector has successfully structured a landmark US$125 million syndicated debt financing facility for state-backed Mutapa Gold Resources (MGR) to accelerate aggressive expansion operations at Shamva Gold Mine (Shamva Hill project) and Jena Mines, in a clear demonstration of local financial institutions’ capacity to bankroll large-scale capital projects in the extractive industry.The multi-lender transaction, arranged by CBZ Capital as the lead advisor, raised US$50 million above the initial US$75 million target, providing crucial financial impetus to MGR’s US$250 million capital expenditure programme.The 36-month facility features a six-month grace period before amortised repayments commence over the remaining 30 months. At least 8 financial institutions participated including CBZ Bank and Ecobank Zimbabwe, which each committed US$25 million, CABS with US$20 million, NMB Bank and ZB Bank contributing US$15 million apiece, alongside US$10 million contributions from FBC Bank and First Capital Bank, with additional participation from the AFC Commercial Bank consortium.On the sidelines of the signing on ceremony held in Harare on Thursday, Mutapa Gold Resources Chief Executive Patrick Maseva-Shayawabaya waxed lyrical over the importance of the finacial package.He expressed immense appreciation to the local banking market for oversubscribing to the capital raise, saying that the financial services industry in Zimbabwe exceeded expectations by delivering a total of US$125 million against the initial US$75 million request.He opened up on the the strategic distribution of the capital and confirmed that US$75 million has been earmarked for the development of the Shamva Hill project, while the remaining US$50 million balance will be deployed directly towards expansion initiatives at Jena Mine.He added that while the facility provides the necessary leverage to commence execution immediately, additional capital will ultimately be required to complete MGR’s comprehensive long-term project pipeline.Elaborating on the scope of the Shamva Hill development, Shamva Gold Mine General Manager Gift Mapakame outlined that the capital infusion is set to radically transform the mine’s operational scale.According to Mapakame, the project will lift the mine’s annual production profile from the current 0.8 tonnes of gold to approximately 2.4 tonnes per year, a growth trajectory that equates to a substantial six percent increment to total national gold output.Beyond immediate mine development which involves establishing the Shamva Hill open-pit operation and constructing a state-of-the-art processing plan, Mapakame emphasized the socio-economic dividends, indicating that approximately 1 1 800 direct and contract jobs will be created during construction and operational phases.Good to go: Shamva Mine General manager Gift Mapakame outlines the mine expansion plan during the signing on ceremony in Harare on ThursdayFurthermore, he also assured that the foundational infrastructure being developed alongside power utility ZETDC and water supply authority ZINWA is explicitly engineered with extra capacity to ensure surrounding host communities gain direct access to sustainable power and reticulated water services.Complementing the growth agenda at Shamva, Jena Mine General Manager Alfred Madowe detailed a comprehensive turnaround plan financed through the unit’s US$50 million allocation.Bosses affair:MGR chief executive flanked by his divisional managers from Shamva and JenaMadowe explained that primary operations will initially focus on intensive exploration work running through to the end of the year to establish resource certainty.In parallel, the capital will be channeled toward modernizing and rebuilding the mine’s dilapidated processing plant, which is currently inadequate for the company’s long-term output targets.Madowe further pointed out that Jena Mine currently relies on a series of constrained, single-compartment underground shafts and a key priority under the capital injection will involve expanding and upgrading these shaft capacities to handle higher tonnage.Deal sealed:Mutapa Gold Resource chief executives inks the multi lender deal in Harare in ThursdayCommenting on the deal, CBZ Bank Managing Director Valeta Mthimkhulu commended the strategic collaboration among local financiers, describing the transaction as a significant precursor to future billion-dollar capital arrangements driven purely by domestic balance sheets.alfredmadewugiftmapakameMutapagoldresourcespateickmasevashayawaya Harare- ZIMBABWE’S commercial banking sector has successfully structured a landmark US$125 million syndicated debt financing facility for state-backed Mutapa Gold Resources (MGR) to accelerate aggressive expansion operations at Shamva Gold Mine (Shamva Hill project) and Jena Mines, in a clear demonstration of local financial institutions’ capacity to bankroll large-scale capital projects in the extractive industry. The multi-lender transaction, arranged by CBZ Capital as the lead advisor, raised US$50 million above the initial US$75 million target, providing crucial financial impetus to MGR’s US$250 million capital expenditure programme.
The 36-month facility features a six-month grace period before amortised repayments commence over the remaining 30 months. At least 8 financial institutions participated including CBZ Bank and Ecobank Zimbabwe, which each committed US$25 million, CABS with US$20 million, NMB Bank and ZB Bank contributing US$15 million apiece, alongside US$10 million contributions from FBC Bank and First Capital Bank, with additional participation from the AFC Commercial Bank consortium. On the sidelines of the signing on ceremony held in Harare on Thursday, Mutapa Gold Resources Chief Executive Patrick Maseva-Shayawabaya waxed lyrical over the importance of the finacial package.
He expressed immense appreciation to the local banking market for oversubscribing to the capital raise, saying that the financial services industry in Zimbabwe exceeded expectations by delivering a total of US$125 million against the initial US$75 million request. He opened up on the the strategic distribution of the capital and confirmed that US$75 million has been earmarked for the development of the Shamva Hill project, while the remaining US$50 million balance will be deployed directly towards expansion initiatives at Jena Mine. He added that while the facility provides the necessary leverage to commence execution immediately, additional capital will ultimately be required to complete MGR’s comprehensive long-term project pipeline.
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Elaborating on the scope of the Shamva Hill development, Shamva Gold Mine General Manager Gift Mapakame outlined that the capital infusion is set to radically transform the mine’s operational scale. According to Mapakame, the project will lift the mine’s annual production profile from the current 0.8 tonnes of gold to approximately 2.4 tonnes per year, a growth trajectory that equates to a substantial six percent increment to total national gold output. Beyond immediate mine development which involves establishing the Shamva Hill open-pit operation and constructing a state-of-the-art processing plan, Mapakame emphasized the socio-economic dividends, indicating that approximately 1 1 800 direct and contract jobs will be created during construction and operational phases. Good to go: Shamva Mine General manager Gift Mapakame outlines the mine expansion plan during the signing on ceremony in Harare on Thursday
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