HARARE, September 5 (The Source) – The Zimbabwe Stock Exchange-listed mining concern, Bindura Nickel Corporation’s (BNC) cash flow is set to improve following improved production at its Trojan mine, holding company Mwana Africa said in a statement on Thursday.
BNC resumed operations last year after four years of inactivity following a $23 million capital injection.
It has so far sold over 1,000 tonnes of nickel since April this year.
Mwana Africa said the Trojan mine plan had been revised to target higher grade zones of nickel ore which “significantly improves BNC’s cash flow and reduce its working capital requirements.”
The company said its Freda Rebecca Gold Mine was currently cash flow generative, and would continue to explore opportunities to further enhance its value.
The diversified mining group said its subsidiaries, Zani Kodo, Semhkat and BNC would remain under its portfolio while further development of these projects would be done through joint ventures or debt finance.
Meanwhile, Mwana Africa has raised $3.2 million through the sale of 130 million shares to major shareholders to raise capital to cushion the group from declining commodity prices.
“The net proceeds from the subscription will provide general working capital requirements for the foreseeable future,” said the company.