Mwana Africa aims to raise USD 35mn to fund mining projects in Zimbabwe, DRC.

By bne IntelliNews April 4, 2012
Pan-African multi-commodity resources company Mwana Africa plans to raise some USD 35mn to back its operations in Zimbabwe and the Democratic Republic of Congo (DRC), BusinessLive reported. Mwana intends to raise USD 21.2mn from China International Mining Group Corporation (CIMGC) through a conditional subscription of new ordinary shares, and the balance through a placing of new ordinary shares with institutional investors. The company, which is listed on Londons AIM, plans to use the raised funds to restart its nickel mine in Zimbabwe and to fund its Zani Kodo gold and Semkhat copper cobalt projects in the DRC. Mwana holds a 52.9% interest in Zimbabwes Bindura Nickel, the only fully integrated nickel operation in Africa which comprises the Trojan nickel mine, a smelter and a refinery. Bindura Nickel's operations were put on hold in November 2008 due to adverse nickel market conditions and hyperinflation concerns in Zimbabwe. The Trojan mine is now aimed to restart operations within seven months with an annual output of 7,000 tonnes of nickel in concentrate that will be sold to the worlds largest commodity trader Glencore under the terms of an offtake agreement. Mwana holds an 80% interest in the Zani Kodo project, which currently has a 2 million ounce JORC compliant resource that has been delineated from drilling over a 3.2km trend out of the total 9km strike length. Mwana expects further drilling activities to establish a resource in excess of 3 million ounces by the end of 2012. It plans to start a pre-feasibility study to investigate the future mining potential. Mwana holds a 100% interest in Semhkat, which holds exploration rights for an area of 4,845 sq km in the Katanga region in southeastern DRC.

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