Zimpapers Logo

raise the funds.

BNC restarted operations in the last quarter of 2012 after raising US$23 million through rights issue. But the management of company indicated it required an additional US$10 million to attain a positive cash generating stage and achieve annual production level of 7 000 tonnes of concentrate.

“The company advises that despite making significant progress at BNC, including the completion of the financial restructuring in September 2012 and delivering the first nickel in concentrate in April 2013, the company has been unable to raise additional funding through debt, to finance phase two of the restart of Trojan Mine as previously anticipated,” said BNC.  The board and Mwana Africa Plc are considering strategic options to preserve the integrity of the investment.”

Mwana Africa, through its subsidiary Zimnick own 76,5 percent shareholding in BNC after underwriting the rights issues. Trojan and the Smelter and Refinery were placed on care and maintenance in 2008 due to continued operating difficulties in Zimbabwe and a sharp decline in nickel prices.