THE African Banking Corporation of Zimbabwe Limited (BancABC) has granted a US$5,47 million loan to Bulawayo Mining Company Limited (BMCL), a subsidiary of Nasdaq-listed miner Namib Minerals (Namib), to finance the company’s working capital requirements.
Namib, a partnership between Metallon Corporation and American special purpose acquisition company Hennessy Capital Investment Corp VI, owns three mines in Zimbabwe.
These are Redwing Gold Mine, How Gold Mine, and Mazowe Gold Mine.
According to a letter seen by this publication, the loan is a global facility that will be available to the mining company until September 30, 2025.
“We have pleasure in offering to you the…facility on the terms and conditions indicated herein,” BancABC said in the letter dated December 9, 2024 addressed to BMCL.
The facility will be split into three parts.
First, US$467 135 was disbursed as an existing term loan that expired on December 31, 2024.
Next, US$1 million would be given as an overdraft facility that expires on July 31, 2025, and lastly, a US$4 million term loan for capital expenditure would be available over 36 months from drawdown.
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The bank also made it clear that repayments for any amounts disbursed in United States dollars, including capital, interest, costs, and other ancillary charges, shall remain payable in United States dollars.
“It is understood that the amount outstanding to the debit of the borrower’s (BMCL) cash advance account, the amount of bills outstanding drawn and accepted, the amount of documentary letters of credit including guarantees established on the borrower’s behalf under this agreement together with interest accrued, discount charges and other fees due to the bank and unpaid at any time shall be aggregated to calculate the amount outstanding hereunder from time to time, and that aggregate shall not exceed the facility amount,” the bank said.
“Nothing contained herein shall preclude the bank from advancing a sum in excess of the facility amount and recovering the same in the event of default. Repayments for any amounts disbursed in United States dollars including capital, interest, costs and other ancillary charges shall remain payable in United States dollars, notwithstanding anything to the contrary.”
The loan comes as Namib is looking to scale up operations at its mines.
