JOHANNESBURG (miningweekly.com) – Aim-listed Mwana Africa will raise £9,27-million from existing and new institutional investors to fund its drilling programme and to provide finance to keep its BNC mines in Zimbabwe on care and maintenance.
The company has conditionally placed 185 425 548 shares at 5p a share.
"Today's fundraising will support our exploration programme at our promising gold and base metals assets in the Democratic Republic of Congo, while we continue the successful ramp-up of gold production at the Freda Rebecca mine in Zimbabwe,” CEO Kalaa Mpinga said.
He added that the care and maintenance programme would continue to maintain the integrity of Mwana’s assets at Bindura, while it continued to seek finance to restart the operations.
BNC owns and operates the Shangani and Trojan nickel mines, which have hoisting and treatment capacity of one-million tons and 1,1-million tons a year, respectively.
The Shangani and Trojan mines and the Bindura smelter and refinery complex were placed on care and maintenance in November 2008 as a result of continued production difficulties and a sharp decline in the price of nickel at the time.
Mwana plans to restart the BNC assets in a phased manner once it had secured financing.