HARARE July 3 (The Source) – Resources group RioZim’s major shareholder, GEM RioZim Investments has increased its shareholding in the company after taking up more than 20 million ordinary shares following a $10 million rights issue which was subscribed by 67 percent.
RioZim directors proposed the rights offer in January this year to reopen the historic Cam and Motor gold mine, now viewed as key to the group’s revival. The mine was a cash cow until it was shut down nearly 50 years ago, having produced 150 tonnes of gold in its entire life until its closure in 1968.
“Shareholders are further advised that Gem RioZim Investments Limited, the Underwriter, will take up the unsubscribed shares as well as the shares issued to them as commission per the underwriting agreement, amounting to 23,739,212 ordinary shares,” the company said in statement on Friday.
GEM previously held a 24.97 percent stake in RioZim and injected $700,000 for resumption of mining activities at Cam & Motor ahead of the rights offer.
A total of 66,666,667 ordinary shares of a nominal value $0.01 were issued at a subscription price of $0.15.
GEM RioZim Investments is a unit of Harpal Randhawa’s Global Emerging Markets Limited, a $4 billion private equity and venture capital fund specializing in mezzanine, growth capital, buyout, and recapitalization investments.