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Bindura Nickel Corporation is seeking short-term bridging to finance its operations, the majority shareholder Mwana Africa, said yesterday.
In a statement to shareholders, Mwana Africa said the short-term bridging finance would cover funding gaps being experienced at the nickel processor.
Mwana announced last month that it had failed to raise funds to fund phase two of the restart of Trojan Mine which resumed operations last year after being placed under care and maintenance in 2008.
The pan African mining company said it was also examining alternative mining plans to improve cash flow and reduce funding requirements.
“These plans utilise the mining flexibility afforded by the presence of higher grade massive sulphide ore within the Trojan ore body. BNC is in the process of seeking short term bridging finance to cover its funding shortfall, and continues to focus on the preservation and integrity of the business and its assets,” said the statement.
Bindura Nickel Corporation needs about $33 million to recapitalise its operations. Of that amount, $21 million was required during the first year of the restart while the second year would require $11 million.
The company last year approached shareholders seeking to raise $21 million through a rights offer.
Online Reporter