EcoBank extends US$30 million loan facility to local miner

NAMIB Minerals’ subsidiary, Bulawayo Mining Company (Private) Limited, has entered into a non-binding term sheet with Ecobank Zimbabwe Limited for a proposed non-dilutive $30 million loan facility.

The funds are intended to support Redwing Mine’s resource-definition and bankability programme.

A non-dilutive loan facility is a form of structured debt that enables companies to raise capital without giving up equity or any aspect of ownership or voting control, distinguishing it from equity rounds where shares are exchanged for capital. Instead, such a facility depends on repayment structures to compensate the lender.

The proposed 30-month facility remains subject to the usual conditions precedent and the execution of definitive documentation.

In a joint statement, the companies confirmed the progress made so far within the work in progress.

“Upon completion of the definitive documentation and satisfaction of the customary conditions precedent, on the proposed terms, the Proposed Facility, together with previously secured funding allocated to the program, is expected to provide the funding required to complete Step 3 of the Company’s Development Timelines and Milestones, based on the program’s current scope and budget.”

Step 3 is particularly focused on resource definition and establishing the bankability of Redwing Mine. As previously announced, this step had already received partial funding through a US$6.5 million non-dilutive term loan secured from BancABC.

According to the term sheet, the Proposed Facility would finance expenditures related to hoist operations, the expansion and maintenance of the milling plant, acquisition of drilling equipment, mine development, and ongoing exploration drilling aimed at growing Redwing Mine’s resource base.

The process of resource definition and achieving bankability are considered pivotal for assessing the mine’s potential to evolve into a larger-scale gold operation. Completion of this phase will help to determine the scale, capital requirements, and construction roadmap for the mine, thereby supporting key investment decisions.

The companies further noted that Namib Minerals will provide future updates on the status of the Proposed Facility and progress against development milestones.

Additionally, the term sheet contemplates Ecobank and Ecobank Group serving as lead arranger and underwriter for financing the construction phase of Redwing’s proposed large-scale development, pending the completion of a definitive feasibility study and other necessary arrangements.

More details regarding the scope, amount, and specific terms will be provided once the definitive feasibility study is concluded.

Namib Minerals Chief Finance Officer Sphe Mchunu (pictured) said Ecobank’s gesture confirms deep confidence in the company’s operations.

“Further to our announcement on 5 June 2026, we believe Ecobank’s continued support of the Company further reflects confidence in our resources and operating record.

“ If completed on the proposed terms, this Facility would, subject to the results of the definitive feasibility study and negotiation of definitive documentation, complete the funding package for Redwing’s resource-definition and bankability programme. Our focus is on delivering this programme and establishing the basis for a disciplined construction decision,” he added.

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