JOHANNESBURG (miningweekly.com) – A delay in publishing an admission document regarding its proposed acquisition of the Mowana copper mine, in Botswana, has resulted in trade of Alecto Minerals’ shares on the Aim market being cancelled, the miner said on Wednesday.
The suspension of trade will take effect on July 11.
The company in December last year announced the acquisition of Mowana, which was liquidated over P47-million in debt and sold by business rescue practitioners PwC.
Alecto said it remains determined to proceed with the acquisition and to seek admission to trading for the enlarged group on Aim as a new applicant.
The miner has already conducted extensive technical, financial and legal due diligence on Mowana and its holding companies, the results of which will be reflected in the admission document.
The Mowana mine returned to production in March and, to date, 4 300 t of copper concentrate has been produced and sold to Mowana’s offtake partner, Fujax Minerals and Energy.
“Should the acquisition note be completed on the expected timetable, we will need to raise additional funds to continue as a going concern,” Alecto said in a statement.
Failing which, the company would be at a significant risk of being forced into an insolvency process.