Mwana Africa to raise £25m

Mwana Africa plc, the pan-African resources company, has placed 62.5 million new ordinary shares through at a price of 40-pence per placing share, raising £25 million before expenses

However, the precise number of Placing Shares will be finally determined by bookbuild such that the gross proceeds arising from the placing amount to up to approximately £25m.

JPMorgan Cazenove Limited (JPMorgan Cazenove) and Canaccord Adams Ltd (Canaccord) are acting as co-managers. The proposed issue of Placing Shares will be at a price to be determined through an institutional bookbuilding process.

According to the company, the Placing will be made on a non pre-emptive basis, in accordance with the Company’s existing disapplications and authorisations. However, preferential treatment will be given to existing institutional shareholders in the allocation process.

Proceeds of the Placing will be used to continue exploration at certain core prospects, to fund initial capital expenditure at Kibolwe and Freda Rebecca, and to give Mwana Africa the flexibility to provide, as necessary, financial support to Bindura Nickel Corporation (BNC).

Kalaa Mpinga, Chief Executive of Mwana Africa said that Mwana Africa is creating a major resources group on the African continent, through its portfolio of operating assets, prospective targets and exploration activities. Our existing operations in Zimbabwe have, of course, been affected by the economic difficulties in the country. However, our exploration and development activities elsewhere in Africa have continued as planned. The placing will enable us to continue to implement our strategy of moving from exploration to development, enhancing long term value for our shareholders, staff and customers and the countries in which we operate.

Mwana Africa PLC is the first African-owned, African-managed business in this sector to be listed on the London Stock Exchange’s Alternative Investments Market (AIM).

The company was formed through a reverse takeover of African Gold plc, the AIM-listed African gold exploration and mining company, by a privately held mining company, Mwana Africa Holdings (Pty) Limited.

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