Mwana Africa seeks US$15m

programmes in Zimbabwe, the Democratic Republic of Congo and South Africa.
The pan-African resources group has placed 185,4 million new ordinary shares of one penny each with institutional shareholders and additional investors at a placing price of five pence per new ordinary share.
In a statement to shareholders, group chief executive Mr Kalaa Mpinga said proceeds would finance the care and maintenance programme at Bindura Nickel Corporation and maintain Klipspringer in restart ready state.
Mwana holds a 52,9 percent interest in BNC.
However, the biggest chunk of the money will fund a drilling programme at Zani-Kodo and further exploration at the Semhkat base metals concessions in the DRC.
The placing is conditional upon shareholders passing the resolutions at its extraordinary general meeting scheduled for next month and upon the admission to trading on AIM of the placing shares.
“The fund-raising will support our exploration programme at our promising gold and base metals assets in the DRC, whilst we continue the successful ramp-up of gold production at the Freda Rebecca Mine in Zimbabwe.
“In parallel, the care and maintenance programme will continue to maintain the integrity of our assets at Bindura, whilst we continue to seek finance to restart our operations.
“These are important and ongoing elements of our strategy to create shareholder value by developing our multi-commodity portfolio of assets across the African continent,” said Mr Mpinga.
BNC owns and operates the Trojan and Shangani underground mines and the Bindura Smelter and Refinery complex, all of which are currently on care and maintenance.
It also owns the Hunter’s Road nickel deposit and development project.
BNC’s operations were put on care and maintenance in November 2008 following the decline in global nickel prices, and as a result of difficult operating conditions then prevailing in the country.
Given the recently improved metal prices and operating conditions in Zimbabwe, BNC is seeking to restart the Trojan Mine and has developed detailed plans for the resumption of operations at Trojan which have been reviewed by SRK in a Competent Persons Report.
Whilst the company continues to seek financing, which may include debt, to restart operations, working capital is required to maintain the BNC assets on the care and maintenance programme to ensure a lower restart cost and shortened time to production post restart.
Meanwhile, Mwana Africa said it had submitted representations relating to the indigenisation regulations to the Government and discussions are ongoing to determine the impact, if any, on Mwana’s shareholding in its Zimbabwe assets.