“… all the resolutions put to the company’s shareholders were duly passed, including that related to the US$15 million (£9,27 million) gross placing of 185,425,548 new ordinary shares,” Mwana’s executive chairman Oliver Baring said.
Baring said the share placing became unconditional on June 14.
“Upon admission the company’s total issued share capital will be 717,900,708 ordinary shares, excluding 2,666,600 ordinary shares held in treasury,” he said.
Mwana also intends to use the money to fund the group’s exploration programmes in the DR Congo and South Africa.
The Africa-focused resources group placed 185, 4 million new ordinary shares of one penny each with institutional shareholders and additional investors at a price of five pence per new ordinary share.
Mwana produces nickel and gold in Zimbabwe through 52,9% owned Bindura Nickel Corporation and Freda Rebecca respectively.
The group’s chief executive Kalaa Mpinga said the placement proceeds would finance the care and maintenance programme at Bindura Nickel Corporation (BNC).
“The fund-raising will support our exploration programme at our promising gold and base metals assets in the DRC, whilst we continue the successful ramp-up of gold production at the Freda Rebecca Mine,”Mpinga said.
“In parallel, the care and maintenance programme will continue to maintain the integrity of our assets at Bindura, whilst we continue to seek finance to restart our operations,” he said.
BNC listed on the Zimbabwe Stock Exchange owns and operates the Trojan and Shangani underground mines and the Bindura Smelter and Refinery complex, all currently on care and maintenance.
It also owns the Hunter’s Road nickel deposit and development project.
Post published in: Business Analysis