HARARE – Kwekwe-based gold mine, Gainwell Investments (Gainwell), has lapsed into liquidation due to worsening economic conditions in the country.
The miner’s liquidator, Modern Mutumwa, told the businessdaily that the company — which began operations in 2012 — had been pushed out of business by the country’s toughening operating environment, despite firming gold prices and deliberate government policies to promote small-scale gold miners.
“The small-scale mine’s operations failed to take off properly so it is now in liquidation and we are trying to mitigate the situation and salvage something.
“Yes, the assets will be put up for sale but they will not generate much… From where I am standing looking at the few assets the company holds, there is very little room for redemption,” Mutumwa said.
The liquidator attributed the mine’s collapse to a “difficult” operating environment.
“Honestly speaking, the economy did not help the company’s fortunes from high overheads and power issues…,” he said.
The miner’s creditors met in the capital last week to present proof of claims.
“…All creditors who have not lodged their claims are advised to urgently collect proof of claim forms… The due date for submission of claim forms is Friday, June 23 at the High Court, Master House,” the liquidator said.