HomeNewsUPDATE 1-Mwana brings in Chinese partner with share sale

UPDATE 1-Mwana brings in Chinese partner with share sale

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LONDON – Miner Mwana Africa said on Monday it plans to raise $35 million with a share sale that will bring in a Chinese partner and could fund the restart of a nickel mine in Zimbabwe as well as gold and copper projects in the Democratic Republic of Congo.

Mwana said China International Mining Group Corporation would buy $21.2 million of new shares at 5.5 pence per share, with the remaining shares being sold to institutional investors via a placing at the same price.

Mwana owns a 52.9 percent stake in Bindura Nickel Corporation in Zimbabwe, the only fully integrated nickel operation in Africa, whose assets include the Trojan mine.

It also owns an 80 percent joint-venture interest in the Zani Kodo gold project and 100 percent of SEMKHAT copper-gold project, both in the Democratic Republic of Congo.

Mwana shares were trading at 5.5 pence at 0810 GMT, up from Friday’s close at just over 5 pence.

In financing conditions that remain tough for early-stage projects, miners have increasingly turned to a new generation of strategic buyers, including Chinese players keen to secure supply for the world’s greatest commodity consumer.

Chinese miners and investors have been increasingly successful in snapping up stakes or projects in Africa, from Minmetals’ acquisition of Anvil Mining to Jinchuan’s acquisition of copper and cobalt producer Metorex, or iron ore miner African Minerals’ $1.5 billion deal with Shandong Iron & Steel, completed last week.

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