Mutapa Gold secures US$75mln for Shamva project

Published: 1 hour ago

State-owned gold producer Mutapa Gold Resources is set to embark on a major expansion drive after securing US$75 million in syndicated financing for the first phase of its US$152 million Shamva Hill Project.

The company announced that construction of the long-awaited project will begin in August 2026, positioning it among Zimbabwe's most significant mining investments in recent years.

According to the company, the initial funding package has been arranged through a consortium of four local banks, while discussions with international financiers are continuing to secure the remaining capital required to fully fund the development.

"US$152 million Shamva Hill project to commence in August 2026. US$75 million funding for the first stage secured from a syndicate of four local banks and negotiations are ongoing with external financiers for the balance," the company said.

The Shamva Hill Project is expected to become a flagship asset within Mutapa Gold's portfolio, substantially increasing production capacity and contributing to Zimbabwe's efforts to grow mineral exports and foreign currency earnings.

In addition to the new development, Mutapa Gold is also advancing expansion plans at Jena Mine. Chief Executive Officer Patrick Shayawabaya confirmed that Phase One of the mine's expansion programme is scheduled to commence during the fourth quarter of the 2026 financial year.

The combined investment strategy, which includes the development of Shamva Hill and the expansion of Jena Mine, is expected to strengthen the company's production base, improve operational efficiency and extend the lifespan of its mining assets.

The projects also align with Zimbabwe's broader objective of increasing gold output, a key source of export revenue and foreign currency inflows, as the country seeks to accelerate growth in its mining sector.
- NewsDay

Tags: Gold,