Pambili Natural Resources secures US$250k loan

Pambili Natural Resources Corporation, a natural resources exploration and development company with interest in Matabeleland North has secured a six-month US$250 000 loan to be channelled towards working capital.

Already it has received US$150 000.

On April 28, 2022, it closed a US$515 000 non-brokered private placement and earn-in investment of Techshed Investments’ ownership of Happy Valley Mine, a gold mine in Zimbabwe.

The mine, located 15 kilometres from Bulawayo, has installed capacity to process 40 tonnes of ore per day.

“Pambili Natural Resources Corporation is pleased to announce that it has secured a US$250 000 convertible loan through an agreement with an arms-length third party. The proceeds of the Loan will be used by the Corporation for general working capital,” it said in a notice last week.

The entity has already received the first US$150 000 and the balance is expected before the end of September.

“The loan has a term of six-months from the date of receipt of the final tranche and repayment includes a premium of US$75 000.

The total repayment of US$325 000 will be satisfied through the issue of Pambili shares at the higher of US$0,05 or the price set in the next Private Placement or Public Offering (should such an offering close within the Term), it being a condition of the Loan that the Corporation will proceed with the one for ten share consolidation approved at the last special meeting of the shareholder.

“On Settlement, the Lender will also receive Warrants issued at the same rate as those issued to any Private Placement participants.”

Gold

Commenting on the development, Pambili chief executive officer Mr Jon Harris said: “We are delighted that the lender not only believes in our vision for a gold consolidation strategy in Zimbabwe but is also prepared to provide the financial support required to execute that vision.

“I would like to thank the lender for that support, and we look forward to working closely with them who, through the Settlement, will have a vested interest in our future success.”

Gold production has been booming with the small-scale miners contributing the bulk of the precious mineral being channelled to the Reserve Bank of Zimbabwe

Reserve Bank of Zimbabwe (RBZ)

Gold is a key foreign currency earner for Zimbabwe besides tobacco, accounting for over 70 percent of the nation’s annual foreign currency inflows.

In October 2019, the Government launched the US$12 billion mining industry roadmap and the gold sub-sector is expected to contribute US$4 billion.

The Government has since then been working on a number of programmes to boost gold output as well as attract new investors to the sector.

There is also a programme to expand operations, revive or open closed mines as well as provide incentives to gold miners.

Large scale producers like Caledonia, Freda Rebecca and Dallaglio Investments are investing in additional capacity, which should drive output towards the 2023 target. -chronicle.c.z