|Mwana Africa seeks approval for rights issue|
|Friday, 08 June 2012 12:00|
asked to approve the rights issue at an extraordinary general meeting on June 29.
“Completion of the rights issue is conditional upon, inter alia, satisfactory resolution of legacy creditor, staff retrenchment and backpay liabilities at BNC in such a way that makes the restart of Trojan viable,” said Mwana Africa in a statement on its official website.
The indigenisation policy requires foreign-owned companies, including mines, to turn over the majority stakes to black indigenous people.
A further US$12 million will also be required to ensure that the firm gets into a positive cashflow position. The management is confident they can secure the remaining funding from alternative sources, including debt.
Mwana chief executive Mr Kalaa Mpinga said: “Economic and operating conditions in Zimbabwe have improved markedly over the past few years. And following the recent subscription by China International Mining Group Corporation into Mwana, the time is right to proceed with the phased restart of operations at BNC, beginning
with mining at BNC’s Trojan Nickel Mine.
“I look forward to updating shareholders on the result of the rights issue in due course.”
BNC owns and operates the Trojan Nickel Mine, Shangani Nickel Mine and a smelter and refinery, all of which are currently under care and maintenance.
BNC management considers that economic and operating conditions in Zimbabwe have improved significantly and, having considered a number of potential restart scenarios, has decided to restart operations in phases, beginning with the Trojan Nickel Mine which will initially produce concen-trate.