Alecto ramps up production at Mowana mine
Staff Writer | Friday June 9, 2017 16:07
The mine is ramping up to full production capacity and is on track to deliver production of 12,000t of copper concentrate in the third quarter.
The funds raised will be used to provide a loan of up to $1-million to Cradle to meet the working capital requirements at Mowana during the ramp-up phase.
“We are pleased to secure this additional facility. It is intended that copper concentrate produced from Mowana will be delivered to its offtake partner, ahead of making a decision regarding the construction of a dense media separation plant, which has the potential to double output at the mine.
“The coming months are expected to be transformational for Alecto and this will support us while we drive our business forward,” said CEO Mark Jones.
Production costs are expected to average $1.5 per pound with the mine estimated to have a value of $87.5 million for the initial 12,000 tonnes.
Alecto and its partners say they have re-modelled Mowana Mine to ensure profitable operations even at depressed commodity prices, leading to an internal estimate for the project’s net present value of $245 million at a copper price of $2.50 per pound.
Alecto has also agreed a 10-year management contract for Mowana with its partners and will receive management fees equal to 1.5% of revenue.
The resurgence of the mine has come as a boost to the economy as there is currently no operating copper mine in Botswana following the placement of the BCL Group under provisional liquidation last year. Alecto Minerals plc is an African focused, gold exploration and development company quoted on AIM, with projects in Zambia, Mali and Burkina Faso.