Mwana Africa share offer 80pct subscribed, raises $4,4mln

Mwana Africa share offer 80pct subscribed, raises $4,4mln

HARARE, September 29 (The Source) – Resources group Mwana Africa on Tuesday said it had raised $4,43 million (GBP2,92 million) from an open offer of new ordinary shares for developing its Klipspringer diamond mine in South Africa and to boost its balance sheet.

The group had sought to raise $5,6 million (GBP3,67 million) through the offer for 367.6 million shares at one pence per share in the open offer to ‘qualifying shareholders,’ and 110,340,621 ‘excess shares.’

The offer, which closed on Monday, saw 292,364,768 shares or 79.52 percent being taken up, raising $4,43 million.

Majority shareholder, CIMGC now holds 275,338,243 shares, representing 16.3 percent of the enlarged share capital, from 15.6 percent before the offer.

Executive chairman Yat Hoi Ning increased his shareholding in the group to 6.30 percent after buying 119,554 open offer shares and 105,306,913 excess shares.

Another director, Yuan Ching Hu bought 119,554 shares under the offer to put his stake at 574,099 shares, although his total shareholding remains flat at 0,03 percent.

Both Ning and Hu are substantial shareholders and directors of CIMGC, which Ning chairs.

The move to develop its diamond mine will diversify from its mainly Zimbabwean operations where it owns Freda Rebecca, the largest single gold mine in the country and Trojan nickel mine in Bindura through locally-listed Bindura Nickel Corporation.

Falling gold and nickel prices left the group exposed, with its profit for the full-year to March 31 falling to $7 million from $50,6 million in the prior year.

BNC is Africa’s only integrated nickel company with a mine, smelter and refinery. The smelter is undergoing refurbishment and is expected to be in operation in the first quarter of next year.

In addition to developing its Klipspringer diamond operation, the funds will be used to cover corporate restructuring and re-organisational costs following board changes in June.