Namib Minerals Signs Ecobank Term Sheet for $30M Loan

In Short

Namib Minerals says its subsidiary, Bulawayo Mining Company (Private) Limited, signed a nonbinding term sheet with Ecobank Zimbabwe Limited for a proposed $30 million loan facility.

What Happened

Namib Minerals announced that Bulawayo Mining Company (Private) Limited has signed a nonbinding term sheet with Ecobank Zimbabwe Limited for a proposed non dilutive $30 million, 36 month loan facility.

The company said the proposed facility is intended to support Redwing Mine’s resource definition and bankability programme. Resource definition is work to map and measure a mineral deposit. Bankability is the technical and financial proof that a mine can be financed and built.

Namib Minerals said the proposed facility remains subject to completion of customary conditions precedent and the execution of definitive documentation.

The company also said that, if definitive documentation is completed and conditions precedent are met, the proposed facility, together with previously secured funding allocated to the programme, is expected to provide the funding required to complete Step 3 of the company’s Development Timelines and Milestones, based on the programme’s current scope and budget. It said Step 3 focuses on resource definition and establishing the bankability of Redwing Mine.

Namib Minerals added that Step 3 had been partly funded by a $6.5 million non dilutive term loan facility secured from African Banking Corporation of Zimbabwe Limited.

Why It Matters

If finalised, the proposed facility would extend Namib Minerals’ non dilutive funding plan for Redwing Mine. Non dilutive funding is debt rather than selling new shares, so existing shareholders are not diluted.

The update also shows how banks in Zimbabwe are being positioned to finance mine studies that can lead to larger project funding, once conditions are met and definitive documents are signed.