A consortium of Zimbabwean banks has mobilised US$125 million to finance Mutapa Gold Resources’ US$152 million Shamva Hill Open Pit Project, in a landmark syndicated loan expected to significantly boost gold production and strengthen the country’s mining sector.
The facility, oversubscribed by US$50 million above the initial US$75 million target, was arranged by CBZ Bank, Ecobank Zimbabwe, CABS, ZB Bank, NMB Bank, FBC Bank, First Capital Bank and AFC Commercial Bank. The 36-month facility carries a six-month grace period before repayments begin, with the balance amortised over the remaining 30 months. The additional funding will also support expansion works at Jena Mine.
Mutapa Gold Resources Chief Executive Officer Patrick Maseva-Shayawabaya said the overwhelming response from local financial institutions reflected growing confidence in Zimbabwe’s mining industry.
“The financial services industry in Zimbabwe surprised us. When all those participating have signed, the amount that we have raised is US$125 million – US$50 million more than the US$75 million that we wanted. That US$50 million is what we’re going to allocate to Jena.”
The Shamva Hill Project will transform Shamva Mine from an underground operation producing about 0.8 tonnes of gold annually to 2.4 tonnes per year, representing a 264 percent increase in production. The expansion will also free processing capacity at Freda Rebecca Gold Mine, positioning Mutapa Gold to increase group production to more than 220,000 ounces annually by 2029 and advance its ambition of becoming a US$1 billion gold mining business.
Speaking during the signing ceremony, Shamva Gold Mine General Manager said the transaction represented a watershed moment for Zimbabwe’s mining and banking sectors.
“This is a turnaround point where we have realised how the financial services market has become receptive to the national development agenda, and more so have become cognisant that mining as an industry is the cornerstone to drive that particular development agenda.”
He commended the participating banks for structuring an innovative syndicated facility that broke new ground for mining finance in Zimbabwe.
“I’d never imagined that I would come across such a creative syndication that has been put across by our local banks today. I really have to applaud the facilitators and the bankers that have participated in this structure for a very creative structure that is breaking through the barriers that we have in terms of fundraising within the mining sector.”
The General Manager said the Shamva Hill Project had been in planning for five years and that conditions were now ideal for implementation.
“We’ve lived with this dream for about five years… the timing couldn’t have been better than what it is right now. We’ve got a good mineral resource, the market is booming in terms of gold trading, the technology for efficient extraction is there, the skills are there, and the appetite and capital is also there.”
He said the project would increase Shamva Mine’s annual production from 0.8 tonnes to 2.4 tonnes, contributing an additional six percent to national gold output while consolidating Mutapa Gold’s position as Zimbabwe’s largest gold producer.
Beyond increased production, he said the project would deliver lasting benefits to surrounding communities through investments in water and electricity infrastructure, healthcare services, education and employment.
“The biggest beneficiaries of this project will be the community… Shamba Hill will bring with it a lot of employment opportunities and we’ll be able to take up close to around 1,800 employees, including contractors and owner employees.”
Construction of the open-pit mine, processing plant and supporting infrastructure is expected to commence later this year following completion of detailed engineering designs, with commissioning targeted for 2028.
Speaking on behalf of the banking consortium, CBZ Holdings Group General Manager Patrick Matute described the transaction as “the making of a billion-dollar business.”
“Today, Mutapa Gold is already Zimbabwe’s largest gold producer, delivering around 115,000 ounces annually across Freda, Shamva and Jena. But the ambition we’re financing today goes much further. With Shamva Hill and Jena expansion, Mutapa Gold has a clear path to annual output of over 220,000 ounces.”
The investment is expected to cement Mutapa Gold’s position as Zimbabwe’s leading gold producer while accelerating Zimbabwe’s drive to expand mineral exports and leverage gold as a key pillar of economic growth.