Musanhi acquires 15pc of Freda Rebecca

when they first invested in the gold mining company.
Mwana acquired a 100 percent stake in Freda in April 2005, from AngloGold Ashanti for a discounted US$2,5 million with an obligation to sell 15 percent stake to a local investor.

Mwana chief executive Mr Kalaa Mpinga said the group’s shareholding in Freda Rebecca following the disposal would be 85 percent.
“The disposal fulfils an obligation Mwana made at the time we purchased Freda Rebecca in 2005, and is conditional on receiving approval from the Industrial Development Corporation of South Africa, the principal debt provider to Freda Rebecca,” said Mr Mpinga.
Mr Musanhi is well respected in Bindura and has played a significant role in assisting in the restart of the mine.

“We look forward to continuing to work closely together on further developing the prospects of the Freda Rebecca Gold Mine,” he said.
He is a prominent and respected businessman from Bindura and is well-known to the company, having been a longstanding board member of Freda Rebecca.
“His input in the efforts to restart operations at the mine has been invaluable,” said
Freda Rebecca halted operations in 2007. Mining operations recommenced in September 2009 and since then Mwana has successfully grown gold production at the mine to a current annualised rate of over 50 000 ounces,

Freda Rebecca made a profit before tax of US$11,5 million during the six months to September 30 2011.
The mine has managed to secure US$10 million from IDC South Africa and production is expected to increase.
But cost pressures will continue to weigh down overall performance of the company with electricity and fuel.

Owing to erratic power supplies, Freda Rebecca consumes around 150 000 litres of fuel per month to power its generators, costing an estimated US$1,9 million on fuel.
Meanwhile, analysts said the deal would help Mwana meet the country’s equity laws.

Mwana had submitted its proposal to Government but it was turned down. Zimbabwe’s empowerment law compels foreign investors to control 49 percent shareholding in local companies.