RioZim Limited has unveiled an aggressive balance sheet restructuring plan anchored on the transfer of its 22.2 percent shareholding in RZM Murowa as part of a US$60.78 million debt-for-asset swap aimed at rescuing the struggling miner from mounting financial pressure.

In an investor circular released to shareholders, the company said the proposed transaction forms the centrepiece of a broader turnaround strategy designed to extinguish legacy debt, recapitalise core mining operations and restore long-term financial stability.

The miner intends to transfer its entire stake in RZM Murowa together with four diamond mining claims to related party RZM Murowa (Private) Limited in exchange for the full waiver of a US$60.78 million loan currently weighing on its balance sheet.

“The proposed debt-for-asset swap represents a critical step toward deleveraging the company and restoring financial sustainability,” the board said in the circular.

The non-cash transaction is expected to dramatically reduce RioZim’s total debt burden from approximately US$76.5 million to about US$15.7 million, significantly improving solvency ratios and easing liquidity constraints that have hindered operational recovery.

Directors said the restructuring would not dilute existing shareholders or alter the company’s shareholding structure, preserving investor positions while strengthening the company’s financial footing.

Alongside the debt relief plan, RioZim is proposing the disposal of several non-core assets, including properties in Nyanga and Newlands, as well as the sale of Mtandahwe Copper & Tungsten and One-Step gold mining claims to unrelated third parties.

Proceeds from these disposals will be channelled toward working capital requirements and operational stabilisation.

“The transactions are intended to provide essential liquidity while allowing management to focus resources on viable core mining assets,” the company said.

The board is also seeking shareholder approval to secure a future loan facility of up to US$35 million to fund the restart and recapitalisation of key mining operations, a move expected to pave the way toward renewed production and positive cash flow generation.

According to the circular, successful implementation of the restructuring will enhance RioZim’s ability to attract new investment and potentially resume dividend payments once profitability is restored.

The directors, supported by independent financial advisor Kreston Zimbabwe, unanimously recommended that shareholders vote in favour of all resolutions at the upcoming Extraordinary General Meeting.

“The directors are of the unanimous opinion that the proposed transactions are fair, reasonable and in the best interests of the company and its shareholders,” the circular stated.

The Extraordinary General Meeting will be held virtually on April 22, 2026, with voting eligibility restricted to shareholders on the register by April 15. Proxy forms must be lodged by April 20, while results of the vote are scheduled for announcement on April 24.

However, the company warned that failure to approve the resolutions would leave RioZim exposed to significant going-concern risk, noting that the outstanding loan owed to RZM Murowa is payable on demand.

“Should the resolutions fail, the company will remain burdened by unsustainable liabilities, severely limiting its ability to raise new capital or attract investment,” the board cautioned.

The restructuring comes as RioZim attempts to reverse years of financial strain amid operational disruptions and constrained funding conditions across Zimbabwe’s mining sector.

As at April 16, 2026, RioZim shares were trading at 75 ZWG cents, with indicative trading liquidity over the past 12 months averaging about US$2,480 per month, highlighting the importance of the turnaround plan in restoring investor confidence.