Mwana Africa seeks to raise $5.6 million to restart diamond mine

Mwana Africa today said it is planning to raise $5.6 million (GBP3.67 million) in an open offer to shore up its balance sheet and develop its Klipspringer diamond mine in South Africa.

The resources group said it will issue 367.6 million shares at one pence per share in the open offer to ‘qualifying shareholders,’ although existing shareholders will be allowed to participate in the issue. Under the terms of the issue, current shareholders will be able to buy one open-offer share for each 3.802 ordinary Mwana Africa shares they already hold.

Currently the group’s main operations are in Zimbabwe where it owns Freda Rebecca, the largest single gold mine in the country and Trojan nickel mine in Bindura through locally-listed Bindura Nickel Corporation.

BNC is Africa’s only integrated nickel company with a mine, smelter and refinery. The smelter is undergoing refurbishment and is expected to be in operation in the first quarter of next year.

In addition to developing its Klipspringer diamond operation, the funds will be used to cover corporate restructuring and re-organisational costs following board changes in June, Mwana said.

It said major shareholder, CIMGC is subscribing for its pro-rata 15.6 percent entitlement and will apply for excess shares up to the 29.9 percent mandatory bid limit.

Executive chairman Yat Hoi Ning and director Yuan Ching Hu, who each hold 454 545 or 0.03 percent of Mwana’s issued share capital, said they will subscribe for their entitlement and that they also intend to apply for excess shares.- The Source

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