mwanaMwana Africa, the parent company for Bindura Nickel Corporation (BNC) and Freda Rebecca Mine, said it is seeking to raise £3,67 million (about $5,6 million) through a rights offer to be used to develop its South African diamond mine Klipspringer.
The Pan African resources firm said it was offering 367 643 523 to existing shareholders on a ratio of one new share for every 3.82 shares already held.
“The net proceeds of the open offer (after commission and expenses) will be used principally for the further development of the Klipspringer diamond mine in the Republic of South Africa (with the objective of re-commencing underground production), corporate restructuring and re-organisation costs (including satisfying non-recurring exceptional items arising from the June 2015 directorate changes), and for general working capital purposes,” it said.
Mwana Africa, which also has operations in the Democratic Republic of Congo, bought the diamond mine in 2007 but later placed the operations under “care and maintenance” due to viability issues.
The resources firm said it had received firm commitments from some shareholders including Chinese International Mining Group Corporation (CIMGC) holding 15,66 percent of existing shares that they will support the fund raising venture.
“In addition CIMGC, Yat Hoi Ning and Yuan Ching Hu have each confirmed that they intend to apply for Excess Shares pursuant to the Excess Application Facility (subject to scaling back to ensure a maximum holding of no more than 29,9 percent of the Enlarged Share Capital, as described in the Circular),” Mwana Africa said.
CIMGC is now the biggest shareholder in Mwana Africa after it recently booted out its founding executive and chairman, Kalaa Mpinga. Mr Yat Hoi Ning is now the executive chairman. Mwana Africa early this year mobilised over $20 million via bond to finance the restart of BNC smelter. – New Ziana.