Mwana Africa mulls funding options

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By Zimbabwe Investor on July 8, 2013. No Comments


Pan African miner Mwana Africa has revealed that it is weighing up several funding options, including an equity placing and funding at project level.

The company, which mines gold, nickel, copper and diamonds in Zimbabwe, the Democratic Republic of Congo (DRC) and South Africa, recently told the market it was tightening its belt in response to the new lower-priced minerals environment that has plunged a number of AIM-listed miners into uncertainty.

It is aiming to save around US$5mln a year and is considering its strategic options for its assets and projects, such as the Bindura Nickel Corporation (BNC), its Zimbabwean subsidiary, and Zani Kodo, its gold project in the DRC.

Its Freda Rebecca gold asset in Zimbabwe continues to perform well operationally, but is producing less cash as a result of the weaker gold price. The pilot plant project to test the viability of treating Freda Rebecca’s tailings dumps continues.

The falling nickel price, meanwhile, has hampered recent efforts to secure funding for BNC, which is looking to kick off phase two of the restart of its Trojan mine.