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The company’s shareholders approved all the motions put to the vote at an Extraordinary General Meeting held in Harare.
Other motions agreed to by the shareholders were for directors to issue shares to creditors and staff to settle some of mining company’s liabilities.
BNC shareholders also assented to Mwana Africa’s role of underwriter of the rights issue.
Mwana Africa currently owns 52,9 percent of BNC’s total issued share capital.
Sources close to BNC indicated that Mwana’s shareholding could drop to below 50 percent, if all the shareholders followed their rights to invest and a large portion of staff and creditors accepted shares as part of their settlement packages.
However, until all the responses are received from shareholders, creditors and staff on the number of shares they will take, the final shareholding in BNC post the rights issue and restructuring remains uncertain.
Although shareholders have given the green light, the rights issue’s success depends on BNC reaching a consensus with staff on the settlement of retrenchment and
backpay costs. The company also needs to agree with creditors on the US$16 million it owes them.
BNC managing director Mr David Murangari said if staff and creditors rejected the offer from the company, BNC could end up being liquidated.
In the event of liquidation, he said staff and creditors stood to receive much less than they were being offered in the settlement packages.
“This would be a loss-loss situation for all concerned,” he said.
The shareholder approval comes two weeks after BNC made an offer to settle staff retrenchment and backpay liabilities through a combination of cash deferred cash, BNC shares and houses.
“These are difficult times for BNC, its staff and creditors,” said Mr Murangari. “This plan takes into account the interest of all stakeholders while ensuring the first phase of the BNC restart is viable.”
Employees and creditors could opt for any of the various options proposed to them by the mining group, he said.
Should all stakeholders support the BNC recapitalisation and restructuring, Mr Murangari sees the group generating revenue within seven months after the rights issue.
“Trojan is well prepared for the restart and has focused its care and maintenance activities to better prepare for a restart, including refurbishment of underground systems through to the surface crushing systems.
The Trojan mine is well placed to benefit from the flotation circuit that was commissioned in 2008 which is still fairly new as it was barely used before operations were halted. Other than for some minor work still to be done on the milling circuit, Trojan is “ready to go”, he said.
While the focus was now on the Trojan restart, he added the group’s other assets, including Shangani Mine, Hunters Road and a smelter and refinery, presented future upside potential.
Furthermore, drilling at the Trojan mine continued to suggest that the ore body was open at depth, indicating that Trojan’s mine life could be extended.
Online Reporter