Gold producer RioZim Limited is facing renewed legal and financial pressure after a minority shareholder filed a court application seeking to place the company under corporate rescue, citing alleged insolvency risks amid a reported US$76.5 million debt burden.
In a cautionary statement issued on May 4, 2026, RioZim confirmed that shareholder Tendai Rwodzi, who holds 1,500 ordinary shares representing 0.0012% of the company’s issued share capital, lodged the application with the High Court on April 22, 2026.
Rwodzi argues that the company is under severe liquidity strain and may fail to meet its financial obligations within the next six months, potentially tipping it into insolvency if conditions persist.
The application comes at a time when RioZim is already pursuing aggressive balance sheet restructuring measures. The company has sought shareholder approval to dispose of key assets, including its 22% stake in Murowa Diamonds, along with selected properties and mining claims. It is also in the process of securing a US$35 million loan backed by its assets.
RioZim, however, has dismissed the allegations as “bare and unsubstantiated,” insisting it will vigorously oppose the application in court.
“The Company will defend the application by filing the necessary opposing papers within the following days,” read the statement issued through RioZim Management Services (Private) Limited, signed by company secretary Allan Murimirwa.
The miner also pointed to a similar attempt in April 2025 by the Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) to place it under corporate rescue on comparable grounds.
That application was ultimately dismissed by both the High Court and Supreme Court, with RioZim noting that the latest filing suffers from “similar, if not worse” legal deficiencies.
RioZim’s directors said they remain committed to stabilising the business.
“The Directors and Management of the Company reiterate that they remain committed to unlocking value for the shareholders and to cleaning up the balance sheet of RioZim Limited and attracting new capital for enhanced mining operations,” read the statement.
Shareholders and investors have been urged to exercise caution when dealing in the company’s securities as the legal process unfolds, with further updates expected as material developments arise.
RioZim separated from Rio Tinto plc in 2004 and became a wholly owned Zimbabwean company that produces gold, coal, toll refines nickel and copper.
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