Mwana Africa subsidiary, Freda Rebecca gold mine, has drawn down the final tranche of $6 million from a loan facility provided by the Industrial Development Corporation of South Africa (IDC-SA) as it continues to ramp up production.
IDC, a self-financing, South African state-owned national development finance institution that provides finance to promote industrial and entrepreneurial development, extended a $10 million loan facility to the mine which saw it initially drawing down $4 million.
In a trading update to shareholders, Freda Rebecca said following the success of the Phase 1 refurbishment and the target production rate of 30 000 ounces gold per annum, the mine had drawn down the second $6m tranche of the project finance facility.
The facility is repayable in 10 equal installments over a five-year period.
The group said Freda Rebecca produced an average 2 741 ounces of gold per month for the three months to the end of June and while producing 3 937 ounces in July.
Mwana Africa said it expects the mine to achieve the Phase 2 target production rate of 4 167 ounces of gold per month in September 2011.
Said Mwana chief executive officer Kalaa Mpinga: “We are delighted with IDC’s continued support for Freda Rebecca. This loan marks a significant development for project finance into Zimbabwe.
“The production ramp-up at Freda Rebecca continues to progress and our expansion to 50 000 ounces per annum is well advanced.
“Our objective at Freda Rebecca is now to optimise performance and maximise our exposure to the current advantageous gold price.”
Mwana Africa is a pan-African resources company with operations in Zimbabwe and South Africa and exploration projects and interests in the Democratic Republic of Congo, Angola, Ghana and Botswana. The group has a diverse asset base including gold, nickel, copper, cobalt and diamonds.