Business Reporter
Meikles Limited’s mining subsidiary, Centar Mining, is courting investors as part of its plans to raise about $100 million required in the long term for its Matabeleland gold mining venture.
Meikles last year acquired 51 percent equity from Matabeleland mining firm DGL Investments (Imviga) as the group stepped up efforts to grow its business portfolio.
In an interview, Meikles Limited group company secretary Mr Thabani Mpofu said a huge capital outlay is required for the gold mining operations and the company has been in negotiations with different interested investors.
“The effort has been to mobilise international funds because as you know investments in gold require substantial capital.
“The company would require a capital injection for the gold operations but going forward and in the long term the whole project requires about $100 million which will be invested in phases,” said Mr Mpofu.
He said the Meikles group will use the recent nomination of being one of the best growth companies in Africa to attract more investors.
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Meikles was nominated this year as one of the best growth companies at the World Economic Forum in Cape Town, where the company was invited to China in September.
Mr Mpofu said the visit to China is expected to open doors for more investment.
“The interest in our gold mining project has been intermittent.
“As you know, the interest is hostage to the world prices of the metal and trends normally follow the prices but the interest is there.
“We just have to sort out our macroeconomic, socio-political issues,” said Mr Mpofu.
Meikles Limited last year announced plans to raise about $25 million from third parties to finance the gold mining venture but since then they have failed to secure any investment.
The group has been looking at gold mining companies with a view of getting into partnership with or taking over their assets.
Mr Mpofu said the company will accelerate its aggression into mining as it views the sector as an area with potential to add value to its growing business portfolio.
Meikles Limited has also revived interest in chrome mining where it is expected to spend more than $100 million in a chrome mining project along the Great Dyke.