adminGold and nickel miner Mwana Africa says it has raised US$3,2 million through a share subscription to provide working capital for its operations. Mwana Africa operates Bindura Nickel Corporation and Freda Rebecca mines in Zimbabwe, and also has operations in Angola, Botswana, the DRC and South Africa.
Mwana’s biggest shareholder China International Mining Group Corporation subscribed around 42 million shares of the 130,3 million shares offered and will now hold a 23,07 percent shareholding in the company. CIMGC chairperson and Mwana Africa director Ning Yat Hoi also participated and now holds 6,85 percent equity in the company.
“As previously announced, given the fall in commodity prices in recent months, the company has urgently required further funding and the board has been engaged in a process to secure that funding. As part of this process the Board of the Company has explored a number of funding alternatives and is pleased to have secured the subscription proceeds at such an important time for the company,” Mwana said in a statement. “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.” The company said its mining operations were faring quite well despite poor market conditions prevailing. It said prospects at its operations were looking up as cost cutting measures introduced at its operations were beginning to bear fruit. “Freda Rebecca Gold Mine is cash flow generative, and
Mwana will continue to seek efficiencies and explore tailings re-treatment opportunities to further enhance value at the mine.
“ Zani Kodo, Semhkat and Bindura Nickel Corporation 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 (as previously announced),” said the company.
Commenting on the development, Mwana Africa non-executive chairman, Mr Mark Wellesley, said the company will continue focusing on cutting operating costs. – New Ziana.
Online Reporter