JOHANNESBURG (miningweekly.com) – Aim-listed miner Alecto Minerals has raised £800 000 through the issue of further convertible loan notes to further complete its reverse takeover of Cradle Arc Investments, which owns the Mowana copper mine, in Botswana.
The mine is ramping up to full production capacity and is on track to deliver production of 12 000 t of copper concentrate in the third quarter.
The funds raised will be used to provide a loan of up to $1-million to Cradle to meet the working capital requirements at Mowana during the ramp-up phase.
The notes are repayable on December 2, with a fixed interest rate of 20%.
"We are pleased to secure this additional facility. It is intended that copper concentrate produced from Mowana will be delivered to its offtake partner, ahead of making a decision regarding the construction of a dense media separation plant, which has the potential to double output at the mine.
“The coming months are expected to be transformational for Alecto and this will support us while we drive our business forward,” said CEO Mark Jones.