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MWANA Africa has raised about $3,2 million through the subscription of new shares as the firm seeks to improve its working capital resource base.In a statement yesterday, the Africa focused mining concern said following the fall in commodity prices in recent months, it urgently needed to consolidate its working capital.
It said major shareholder China International Mining Group Corporation (CIMGC) had subscribed for 45 271 457 of the subscription shares while another shareholder Mr Ning Yat Hoi subscribed for the remaining 84 983 260 subscription shares.
The subscription shares represented 11,7 percent of the company’s existing issued share capital.
It said as part of the funding process the company was exploring a number of funding alternatives.
Mwana Africa said it welcomed the support shown by its major shareholder and looks forward to benefiting more from association with CIMGC’s banking and industry connections.
“The net proceeds from the subscription will provide general working capital for the company, and, given progress made to date on cost cutting measures, is considered sufficient to meet Mwana’s working capital requirements for the foreseeable future.
“Freda Rebecca Gold Mine is currently cash flow generative, and Mwana will continue to seek efficiencies and explore tailings retreatment opportunities to further enhance value at the mine. Zani Kodo, Semhkat and Bindura Nickel Corporation (BNC) will remain within the Mwana portfolio.
“Any further development of these projects will be done through project level funding, either in the form of joint ventures and or debt finance, with the Semhkat copper project already benefiting from a joint venture with Hailiang.”
Online Reporter