MWANA Africa PLC has raised an additional $2,8 million through subscription and placing of new shares as it seeks more working capital for its mines.
Tarisai Mandizha
The additional capital comes after the mining firm successfully raised $3,2 million in September.
In a statement yesterday, Mwana Africa’s non-executive chairman Mark Wellesley-Wood said the company raised $2,8 million through a subscription and placing of 112 580 059 ordinary shares by a combination of new investors and existing shareholders of the company at a price of 1,57p.
“Following our success earlier in September in raising an initial amount of $3, 2 million, I am delighted with the support shown for Mwana’s strategy,” Wellesley-Wood said.
“With the working capital shortfall addressed, the focus can now shift to improving the efficiency and cost competitiveness of the company’s operations.”
Wellesley-Wood said China International Mining Group Corporation (CIMGC) has subscribed for 11 728 543 of the transaction shares and NingYat Hoi (21 271 457 shares) while the remaining 79 580 059 transaction shares were taken up by existing shareholders and new investors.
He said the placing element of the transaction was being carried out by Liberum Capital Limited and Peel Hunt LLP as joint brokers to the Company.
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Mwana Africa PLC is a pan-African, multi-commodity mining and development company.
Mwana’s principal operations and exploration activities cover gold, nickel, copper and diamonds in Zimbabwe, the DRC and South Africa.
Mwana’s Freda Rebecca gold mine in Zimbabwe produced 65 350 ounces (ozs) of gold in the 12 months to March 2013 having restarted operations in 2009.
The restart of operations at Trojan Nickel Mine owned by Mwana’s Zimbabwe subsidiary Bindura Nickel Corporation (BNC) followed four years during which all of the BNC assets were under care and maintenance.
In September 2012, BNC carried out a restructuring and recapitalisation which saw $23 million being invested, allowing it to restart Trojan mine.
The first sale of concentrate to Glencore took place in April 2013.
