New investor raises funds to restart Mowana mine

Mowana Mine
Mowana Mine

Mowana Mine’s new investor, Alecto Minerals says it has raised £1-million (P13 million) as the first tranche of funding for reopening of the mine before end of March this year.

The London Stock Exchange-listed Alecto, which is in the process of buying the mine for £6.7 million (P87 million) through a reverse takeover of Cradle investments, raised the funds through the issue of convertible loan notes.

“The net funds raised from the issue of the notes will be used to provide a loan of up to US$1m to Cradle, which it will use to recommence operations at Mowana. Fujax Minerals and Energy Limited, the South African minerals and energy trading company providing off-take financing to Mowana, will match Alecto’s loan to Cradle, thereby providing Mowana with funding of up to, in aggregate, US$2m (P22 million) in the short-term with the aim of bringing the mine back into production in first quarter 2017,” Alecto said.

Editor's Comment
End the GammaNgwato chieftainship spats

The chieftainship spats between Seretse and Khama’s uncles have purely degenerated into a permanent elephant in the room and it does not seem anyone cares to ensure this hurdle is dealt with promptly for the attainment of peace for GammaNgwato’s bogosi.Just as the proverbial, when two elephants fight, it is the grass that suffers aptly suggests, and so is the state of the institution of bogosi in GammaNgwato.Such is the case because the...

Have a Story? Send Us a tip
arrow up