RIOZIM Limited is still waiting for regulatory approval for its $10 million rights issue and expects a favourable response within the next two months.
BY VICTORIA MTOMBA
In a cautionary statement yesterday, the listed mining concern said in the interim, the rights offer calendar was still suspended until the company gets the approvals and a new calendar will be put in place.
“Exchange control Approval for GEM RioZim Limited to underwrite the rights offer. Further talks have been held with the Reserve Bank of Zimbabwe that the above mentioned approval will be granted before the expiration of the 60-day grace period,” the company said.
RioZim said in terms of complying with the indigenisation and Economic Empowerment Act, the company was waiting for the approval of its plan by the government.
“The company has engaged the relevant ministries responsible for assessing indigenisation plans for the mining sector. The government is currently deliberating on the approval of the transaction,” it said.
The company in January this year said it was set to raise $10 million through a rights offer to fund the opening of Cam & Motor Operations.
A rights issue is an issue of rights to buy additional securities in a company made to the company’s existing security holders.
The listed concern said it would make a renounceable offer of 66 666 667 ordinary shares of a nominal value of $0,01 each in the company’s share capital, at a subscription price of $0,15 each to existing shareholders in the ratio of 124,931 new ordinary shares for every 100 ordinary shares already held by shareholders.