BNC US$21m rights issue fully subscribed

third parties who acquired rights through the Zimbabwe Stock Exchange. The remaining shares were taken up by the underwriter, Zimnick Limited, a wholly-owned subsidiary of Mwana Africa Plc.
The rights offer take-up represents a 9,6 percent subscription. Prior to the rights issue, Mwana Africa owned 52 percent of BNC.
BNC has been trying to secure funding to restart its Trojan Nickel Mine through a US$21 million rights issue, which started on June 7.
The rights offer, originally scheduled to close on July 27, was delayed after workers initially resisted the company’s retrenchment and backpay settlement plan, which included an option of deferred cash, houses and BNC shares to settle severance and backpay costs.
After the restart of the mine, BNC predicts the production increasing, over a three-year period, to
7 000 tonnes of nickel in concentrate a year.
Management said repairs to date had covered the main rockshaft bunton sets, main rock shaft ore, bin and waste conveyors, crushing plant steel structures, electrical panels and electric cables, overhauling crushers, conveyors and screens and hot commissioning of the crushing circuit.
Work on the main steel structures in the milling section is still outstanding.
Last week, BNC chief operating officer Mr Batirai Manhando told Herald Business that the rights issue was enough to get the Trojan Mine up and running.
Government has accorded BNC national project status, which allows the company duty-free importation of equipment.
Finance Minister Tendai Biti said Government took a deliberate approach to facilitate the resumption of operations at closed and distressed mining companies to ensure the country benefited from its vast natural resources.
BNC has been under care and maintenance since 2008.