Nqobile Bhebhem, Zimpapers Business Hub
NAMIB Minerals’ plans to develop Redwing Mine into a larger-scale gold operation have received a boost after its subsidiary, Bulawayo Mining Company, signed a non-binding term sheet with Ecobank Zimbabwe for a US$30 million loan facility.
The proposed 36-month, non-dilutive facility is intended to support the mine’s resource-definition and bankability programme. Together with previously secured financing, it is expected to complete the current development phase.
The programme will determine the mine’s resource base, development scale, capital requirements and construction plan, providing a basis for the company’s investment decision on the proposed expansion.
Redwing Mine is a prominent, historic underground gold mine located in the Penhalonga area of the Mutasa District in Manicaland Province, northeast of Mutare, boasting an estimated resource base of 2,5 million ounces of gold.
Redwing Mine has produced approximately 650,000 ounces (0.65 million ounces) of gold throughout its recorded modern history from 1981 to 2023.
The mine flooded in 2008 and operations shifted to processing tailing sands until 2013.
Production restarted in November 2015 under Metallon Gold’s King’s Daughter Mining Company, before returning to care and maintenance on April 1, 2019.
Namib Minerals is advancing a five-step restart and bankability plan for the historic Redwing Mine, anchored by recent dewatering completion.
Resumption of production will boost Zimbabwe’s gold output, which reached a record 46,7 tonnes and 2025 and earned the country US$4,61 billion.
“The proposed facility remains subject to completion of the customary conditions precedent and the execution of definitive documentation,” Namib Minerals said.
The Ecobank loan builds on a US$6,5 million non-dilutive term loan secured from African Banking
Corporation of Zimbabwe, which had partly funded Step 3 of the company’s development timelines and milestones.
Under the proposed Ecobank arrangement, the funding would cover hoist-related expenditure, expansion and maintenance of the milling plant, drilling equipment, mine development and further exploration drilling to increase Redwing Mine’s resource base.
“Resource definition and bankability are key milestones in assessing the potential to develop
Redwing Mine into a larger-scale gold operation.
“Completion of this programme will inform the proposed development’s scale, capital requirements and construction plan and support the Company’s investment decision,” Namib Minerals said.
The resource-definition programme is a critical stage in establishing the technical and financial viability of the proposed development before the company commits to construction.
Namib Minerals completed the commissioning of the How Mine expanded ore milling plant ahead of schedule earlier this month.
It has increased the mine’s monthly processing capacity by 36 percent—moving from 40 500 tonnes to 55 000 tonnes of ore per month.
Namib Minerals aims to ramp up How Mine’s operations to reach full capacity by December 2026.
The company aims to scale its total group-wide production profile toward 300 000 ounces per year across its Zimbabwean portfolio.
How Mine serves as the cash-flow engine for Namib Minerals, which is channeling US$300 million to US$400 million into a multi-asset expansion programme across Zimbabwe, including the restart of Redwing and Mazowe mines.
Beyond the immediate funding proposal, the term sheet contemplates a potential role for Ecobank and Ecobank Group in arranging and underwriting financing for Redwing’s construction phase.
This would follow completion of the definitive feasibility study and remain subject to further conditions and financing arrangements.
The proposed construction financing could provide a pathway towards the next stage of development, although its scope, amount and terms have not yet been finalised. The company said further details would be developed following completion of the definitive feasibility study, which is expected to inform the project’s technical requirements and investment parameters.
Namib Minerals chief financial officer Mr Sphe Mchunu said Ecobank’s continued engagement reflected confidence in the company’s resources and operating record.
“Further to our announcement on 5 June 2026, we believe Ecobank’s continued support of the Company further reflects confidence in our resources and operating record.
“ If completed on the proposed terms, this Facility would, subject to the results of the definitive feasibility study and negotiation of definitive documentation, complete the funding package for Redwing’s resource-definition and bankability programme.
“Our focus is on delivering this programme and establishing the basis for a disciplined construction decision,” said Mr Mchunu.
The proposed financing would allow the company to advance the current programme without issuing additional equity, avoiding the shareholder dilution associated with raising capital through new share issuance.
However, completion of the facility remains dependent on definitive documentation and satisfaction of customary conditions precedent, while any move into construction will depend on
the feasibility study’s findings and subsequent financing arrangements.
Namib Minerals said it would provide further updates on the proposed facility and progress against its development milestones as the process advances.
Source: Redwing Mine expansion receives US$30m lifeline – herald
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