Aim-listed Cradle Arc has raised £396 000, before expenses, by way of a conditional placing of 44-million new ordinary shares of 0.01p each in the capital of the company at a price of 0.90p a placing share.
The proceeds of the placing will be used alongside the funding from the $2-million loan facility provided to the company’s 60%-owned subsidiary Leboam Holdings, by PenMin Botswana, to complete the rehabilitation and improvement of the current processing facilities at the Mowana copper mine.
In doing so, Cradle Arc will be able to address the intermittent breakdowns and interruptions that were the key reason for the company’s inability to meet its production targets during the third quarter of this year.
According to CEO Kevin van Wouw, the company is in the process of applying the funds from the loan facility to improve the process plant to complement the work that has gone into the rehabilitation of the pit.