Padenga Holdings Limited has announced that it will be injecting an additional US$26.3 million into Eureka mine, one of Zimbabwe’s gold mines under resuscitation.
The capital expenditure is expected to be injected before the completion of the rehabilitation project mid-year.
Eureka Gold Mine is situated in Guruve district, Mashonaland Central province.
Padenga Holdings Limited, which has acquired Dallaglio Investments, shareholders of the mine, said 2020 third quarter which ended September 30 saw US$15,189 million being spent on the project. Padenga Holdings Limited said:
Dallaglio’s capital expenditure for the period under review was focused on the rehabilitation project at Delta’s Gold’s Eureka Mine in Guruve.
In the nine months to September 30, 2020, a total of US$15,189 million was spent on this project.
This is additional to the US$7,886 million spent in 2029 bringing total project cost to date to US$23,075 million.
A further US$26,3 million is budgeted to be spent on this project before commissioning.
In 2018, Vast Resources plc, the AIM-listed mining company with operating mines in Romania and Zimbabwe, announced the acquisition of a 95 percent interest in Eureka Gold Mine by its Zimbabwe group company, Dallaglio Investments (Pvt) Ltd (‘Dallaglio’).
Dallaglio now belongs to Padenga Holdings Limited, a public company listed on the ZSE, which majors in the production and sale of crocodilian skins and meat bought a 50.1 percent of Dallaglio equity shares in 2019.