New investor raises funds to restart Mowana mine

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.