Zimbabwe's largest gold miner Metallon Gold is seeking $10-million to start production at its mines, the Herald reported on Wednesday.

The company is owned by South Africa's Mzi Khumalo.

The company's CEO Collen Gura told the Herald that the company was on a resource mobilisation exercise to secure $10-million, "critical for resuming operation and re-equipping the mines".

Gura said the group was in discussions with some lending institutions, both local and off-shore.

"We are encouraged by the positive responses we are getting, especially from local financial institutions," he told the Herald.

Gura however said Metallon badly needed US6 million to kick-start operations at two of its most productive mines, How Mine and Shamva Mine.

"It must be understood that the two mines constitute 66 percent of the group's production and close to 95 percent of the group's cash flow," he said.

It therefore made economic sense for Metallon to start these two mines and roll-out to the other three later, he added.

Gura said the liberalisation of gold marketing in the January 2009 monetary policy statement was "very encouraging".

Under the new dispensation gold mining companies could now source their own markets as well as retain their proceeds in their foreign currency accounts without any surrender requirements, the Herald said.

Metallon also owns Redwing Mine, Arcturus and Mazowe mines.

The group's five mines had the capacity to produce 15 000 ounces of gold every month and accounted for 14 percent of the jobs in the mining sector, the Herald said.