Meikles in bid to raise $25m

Meikles-HotelTinashe Makichi Business Reporter
MEIKLES Limited plans to raise about $25 million from third parties to finance its gold mining venture in Matabeleland to be spearheaded by its subsidiary, Meikles Centar Mining.
Meikles this year purchased a 51 percent stake in DGL Investments, which is a subsidiary of Duration Gold Limited-based in Matabeleland.

The group paid about $10 million for Duration Gold Mine’s Imviga Mine in Matabeleland and the group has also set aside funds to acquire other claims around Imviga Mine to consolidate its position.

Meikles Centar Mining has been looking at four gold mining companies with a view of getting into partnership with or taking over their assets.

Addressing media after the company’s AGM yesterday, Meikles chairman Mr John Moxon confirmed that investors are in the country to look at the gold mining project.

“We are planning to raise about $20 million to go towards our gold mining portfolio and the money is to be raised through third parties. We are expecting to conclude discussions over a $25 million investment before year end.

“I can confirm that we have received visitors and they are currently in Bulawayo, which is near to our gold operations,” said Mr Moxon.

DGL Investments is a small-to-medium-sized gold mining company with two producing assets in the country.

The diversified group is expecting to conclude a deal with foreign investors who intend to invest in the group’s mining portfolio as the company views the sector as an area of substantial growth potential.

Mr Moxon said Meikles expects to conclude the deal with investors on the gold mining portfolio by end of November this year.

As reported by The Herald Business last week, there are investors who were expected this week, eyeing a partnership with the group’s Meikles Centar Mining division. Meikles has added some aggression into mining as it views the sector as an area that has potential to add wealth to its growing business portfolio. An amount to the tune of $500 million is expected to be invested as the group hopes to spread its operations into mining. Meikles Centar Mining got into the gold mining deal with potential to expand its production, as well as to re-open a number of other brownfield properties in DGL’s portfolio.

The proposed purchase was subject to a full due diligence exercise and all regulatory approvals being obtained.

Mr Moxon said the group wants to come up with structures that accommodate such kind of mining investments.

Meikles Limited also expressed intentions of reviving its chrome mining venture next year after the company shelved the project following Government’s directive to ban all chrome exports.

Meikles Centar Mining purchased 75 percent equity in a company that owns a number of chrome claims on the Great Dyke. Proposals were submitted to the Ministry of Mines and Mining Development related to a significant chrome-related project, which include construction of a smelter to beneficiate both lumpy and alluvial ore. The project is expected to cost in excess of $100 million.

Mr Moxon said chrome mining has been cited as one of the drivers for Zimbabwe’s economic recovery and his company plans to exploit the opportunity.
“In terms of chrome, the project is dead but the group is looking at ways to revitalise the project.

“We will engage relevant people to try and review the terms and other charges relating to chrome,” he said. Meikles also carried out limited exploration on iron ore claims in the country and the results were positive.

 

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