Mwana raises $3,2m capital

HARARE - Aim-listed Mwana Africa plc (Mwana) has sourced around $3,2 million through a share subscription to provide working capital.

The funds, given the firm’s progress on cost cutting, should be enough to meet its working capital requirements for the “foreseeable future”, the miner said.

The group’s largest shareholder China International Mining Group Corporation (CIMGC) took part, subscribing for around 42 million shares of the approximate total of 130,25 million and will now hold 23,07 percent of the firm.

Ning Yat Hoi, the chairperson of CIMGC and a director of Mwana, also participated and will hold 6,85 percent.

Mark Wellesley-Wood, Mwana’s non-exec chairperson, he was delighted with the support shown by CIMGC and Ning for the company.

“Our focus now is on driving down costs and extracting maximum value for shareholders from our asset portfolio,” said Wood.

The pan-African mining company said its Freda Rebecca Gold Mine is currently cash flow generative, and Mwana will continue to seek efficiencies and explore tailings retreatment opportunities to further enhance value at the mine.

“Zani Kodo, Semhkat and Bindura Nickel Corporation (BNC) will remain within the Mwana portfolio.

“Any further development of these projects will be done through project level funding, either in the form of joint ventures and/or debt finance, with the Semhkat copper project already benefitting from a joint venture with Hailiang (as previously announced),” said the company in statement.

Mwana noted that in light of the new resources statement at the BNC Trojan mine, the Trojan mine plan has been revised to target the higher grade zones of the ore body, known as “massives”, which significantly improves BNC’s cash flow and reduce its working capital requirements.

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.