Africa-Press – Zimbabwe. HARARE, Nov. 18 (NewsDay Live) – Zimbabwe-focused gold producer, Namib Minerals says it has entered into a strategic partnership Bitumen World Mining to process sands at How Mine as part of initiatives to unlock extra value from existing resources and deliver stronger returns.
In a statement on Monday, the company said How Mine, near Bulawayo in the south of Zimbabwe, holds a surface sands resource of 213 Koz of gold.
“BW Mining has mobilized equipment on site and commenced preparatory work, to begin the initial phase of the testing of sands. Upon successful completion of testing, the Company expects to capitalize on firm gold prices, leveraging the proven competencies and operational capacity of BW Mining to efficiently extract gold from the How Mine sands,” it said.
“The project is intended to increase overall Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and extract additional value from existing resources, positioning the Company to deliver stronger returns to shareholders
“However, such expectations are subject to the completion of the testing phase along with various assumptions, risks and uncertainties, including market conditions, many of which are beyond the Company’s control.”
Bitumen is a Zimbabwean mining and civil works contractor.
The miner said the partnership serves as a complementary initiative to its ongoing capital projects, which remain focused on delivering higher-return opportunities and long-term value across the portfolio.
Namib Minerals was created through the merger of assets previously owned by Metallon Corporation and United States firm, Red Rock Acquisition Corporation, formerly Hennessy Capital Investment Corp. VI.
It owns three gold mines in Zimbabwe, with How Mine the only one in operation.
In July this year, chief executive Ibrahima Tall said the firm had plans to spend $300 million to restart operations at its Mazowe and Redwing mines, where production was halted in 2018 and 2019 respectively.
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