Proceeds earmarked for phase 2 expansion at Freda Rebecca gold mine
By Marisa Wong
Madison, Wis., Oct. 27 - Mwana Africa plc said it raised £5.1 million through a placement of ordinary shares with institutional and other investors.
The company placed 46,367,401 new ordinary shares at a price of 11p per share. The price per share represents a 2.22% discount to the Oct. 26 closing share price of 11.25p.
Ambrian Partners Ltd. acted as broker for the placement.
The placing shares are expected to be admitted to trading on the London Stock Exchange on Nov. 1.
The placing shares will rank pari passu with existing ordinary shares.
Net proceeds, together with $2.5 million of existing cash, will be used to fund the immediate start of the phase 2 expansion program at the Freda Rebecca gold mine, allowing the company to capitalize on the current gold price environment.
"We are pleased to have the continued support of our shareholders to move forward with our gold projects covering both production and exploration activities. At Freda Rebecca we are proud to be returning an important gold asset to significant levels of production and to be leading a resurgence in gold production in Zimbabwe thus assisting the revival of the country's economy," said Kalaa Mpinga, chief executive officer of Mwana, in a news release.
"We believe that the phase 2 investment in Freda Rebecca will be immediately value accretive to shareholders. We are confident that our gold exploration in the DRC will continue to enhance value for our shareholders."
In addition, the funds will allow ongoing exploration at the Zani-Kodo gold project and Semhkat base metals project and provide additional general working capital.
Mwana is a London-based pan-African mineral exploration company.
| Issuer: | Mwana Africa plc
|
| Issue: | Ordinary shares
|
| Amount: | £5.1 million
|
| Shares: | 46,367,401
|
| Price: | 11p
|
| Warrants: | No
|
| Agent: | Ambrian Partners Ltd.
|
| Announcement date: | Oct. 27
|
| Stock symbol: | London: MWA
|
| Stock price: | 11.25p at close Oct. 27
|
| Market capitalization: | £52.26 million
|
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