Allegations Emerge Over Gold Mining Proceeds and Shareholder Benefits

A confidential document has raised concerns over alleged unauthorised gold extraction and related financial activities involving Botha Gold Mine.

The report suggests a potential link between mining proceeds and the acquisition of vehicles distributed to shareholders, following a company statement confirming that such vehicles were handed over during a ceremony held in January 2026 at FaraMatsi Toyota.

Photographic material accompanying the disclosure shows shareholder Nomsa Hove receiving a vehicle, corroborating the distribution.

Company records indicate a concentrated ownership structure, with significant stakes held by entities including Sendoyi 

Investigations further point to a connection between Lanewiz and the vehicle supplier, raising questions about related-party transactions and procurement processes.

In a sworn affidavit, Provincial Mining Director Tendai Kashiri stated that the entity had not acquired rights within Mining Lease 21 (ML21), which is held by Freda Rebecca Gold Mine under Mutapa Gold Resources.

Any mining activity in the area, the affidavit noted, would contravene provisions of the Gold Trade Act.

Investigators estimate that approximately 271 kilograms of gold—valued at around US$40 million—may have been extracted without authorisation, raising concerns about potential losses to the State.

Additional allegations include the collection of fees from small-scale miners for access to the concession, though these claims remain subject to verification.
Regulatory and Legal Implications

Authorities, including the Zimbabwe Anti-Corruption Commission and the Financial Intelligence Unit, are being urged to examine the matter, particularly in relation to provisions under the Money Laundering and Proceeds of Crime Act.

In response, Botha Gold Mine clarified that a recent filing by the Provincial Mining Director is procedural and forms part of ongoing court proceedings.
The company stated that the matter remains before the courts and cautioned against interpreting the filing as a final determination of rights.

Management reiterated that no party should present interim positions as conclusive, emphasising that the dispute is sub judice and subject to judicial resolution.

New documentation suggests that authorities may have been alerted as early as February 2025 to alleged irregular activities at Mining Lease 21.

A letter submitted to the Ministry of Mines and acknowledged by both the Ministry and the Zimbabwe Republic Police outlined concerns regarding unauthorised mining and financial practices.

Despite this, formal enforcement action appears to have taken place more than a year later, prompting questions about regulatory response timelines.

The matter continues to raise broader issues around oversight, governance, and the safeguarding of national mineral resources, with several key questions still unresolved.