News / National
South African tycoon risks losing control of his gold mines in Zimbabwe
2 hrs ago |
39 Views
More than two years after the sale of Bulawayo Mining Company (BMC), a subsidiary of Metallon Corporation, for £53.2 million (about €63 million), the proceeds remain unpaid to the British insolvency practitioners overseeing the Zimbabwe-focused gold mining group.
The sale took place in June 2024, but the administrators have yet to receive the money. In October 2025, they launched legal proceedings in the United Kingdom against South African businessman Mzi Khumalo and the Southern SelliBen Trust, which together held 84% of Metallon's share capital before the company entered administration.
Khumalo and the trust had emerged as the principal shareholders of Greenstone, the Cayman Islands-based company that acquired BMC. Greenstone subsequently transferred the mining company and its assets, including the How, Mazowe and Redwing gold mines, to Namib Minerals, a United States subsidiary listed on the Nasdaq stock exchange.
In a report dated September 21, the administrators said they had secured a court-ordered charge over Namib Minerals' ordinary shares, allowing them to sell the shares to recover the outstanding debt.
The legal action could create reputational challenges for Namib Minerals and complicate its efforts to raise capital. The company, led by Zimbabwean executive Tulani Sikwila, is seeking to raise US$300 million from investors in New York.
The fundraising drive is expected to support several projects, particularly the redevelopment of Redwing Mine, which was affected by flooding in January 2024.
Drainage work at the mine was reportedly completed in early October, paving the way for efforts to resume operations.
The dispute over the unpaid BMC sale proceeds comes as Namib Minerals seeks fresh investment to advance its mining operations, while Metallon's administrators pursue recovery of the money owed from the transaction.
The sale took place in June 2024, but the administrators have yet to receive the money. In October 2025, they launched legal proceedings in the United Kingdom against South African businessman Mzi Khumalo and the Southern SelliBen Trust, which together held 84% of Metallon's share capital before the company entered administration.
Khumalo and the trust had emerged as the principal shareholders of Greenstone, the Cayman Islands-based company that acquired BMC. Greenstone subsequently transferred the mining company and its assets, including the How, Mazowe and Redwing gold mines, to Namib Minerals, a United States subsidiary listed on the Nasdaq stock exchange.
In a report dated September 21, the administrators said they had secured a court-ordered charge over Namib Minerals' ordinary shares, allowing them to sell the shares to recover the outstanding debt.
The legal action could create reputational challenges for Namib Minerals and complicate its efforts to raise capital. The company, led by Zimbabwean executive Tulani Sikwila, is seeking to raise US$300 million from investors in New York.
The fundraising drive is expected to support several projects, particularly the redevelopment of Redwing Mine, which was affected by flooding in January 2024.
Drainage work at the mine was reportedly completed in early October, paving the way for efforts to resume operations.
The dispute over the unpaid BMC sale proceeds comes as Namib Minerals seeks fresh investment to advance its mining operations, while Metallon's administrators pursue recovery of the money owed from the transaction.
Source - online
Join the discussion
Loading comments…
