adminThis means that the majority of the shares will be taken up by the underwriter, Zimnick Limited, a subsidiary of Mwana Africa which owns 52,9 percent of Zimbabwe Stock Exchange listed BNC.
Of the 700 073 894 shares on offer, only 67 189 875 shares were taken up by shareholders, representing an uptake of 9,5 percent.
“. . . 632 884 019 shares were taken up by the underwriter, Zimnick Limited, a wholly owned subsidiary of Mwana Africa plc under the terms of the underwriting agreement. The board is also pleased to announce that a settlement has been reached in respect of liabilities owed to employees and creditors.
In that regard, the company will announce the results of the private placement in due course,” BNC said is a statement.
The rights offer opened on 29 June and closed on 31 August.
Mwana Africa agreed to underwrite the rights offer on condition that the money raised would not be used to pay workers their salary arrears but creditors.
Money raised from the rights offer is expected to restart operations at Trojan Mine which has been under care and maintenance since 2008. Trojan Mine requires at least $33 million to operate at full capacity.
The rights offer is expected to provide sufficient capital to restart operations, while next year an additional $12 million will be required to move the mine into a positive cash flow position.
Online Reporter