Freda Rebecca Mine - Project Finance Update (9073A)
09 February 2011 - 6:00PM
UK Regulatory
TIDMMWA
RNS Number : 9073A
Mwana Africa PLC
09 February 2011
09 February 2011
Mwana Africa PLC
("Mwana" or the "Company") (AIM: MWA)
Freda Rebecca Mine - Project Finance Update
Mwana Africa PLC is pleased to announce that its Zimbabwean
subsidiary, Freda Rebecca Gold Mine Limited ("Freda Rebecca"), has
drawn down the first $4m tranche of the $10m loan facility provided
by the Industrial Development Corporation of South Africa Ltd
("IDC").
Highlights
0 Draw down of the $4m first tranche of the IDC project finance
facility by Freda Rebecca.
0 Loan term 5 years; interest rate 5% over US$ LIBOR.
0 30,000 oz of gold per annum production rate achieved. For the
6 month period from August 2010 production has averaged 2,569 oz of
gold per month. Phase 2 expansion to a production rate of 50,000 oz
per annum is underway.
IDC Project Finance Facility
Following the fulfillment of required conditions precedent,
including the provision by the Export Credit Insurance Corporation
of South Africa ("ECIC") of political risk insurance for the
facility, Freda Rebecca has drawn down the first $4m tranche of the
project finance facility. The drawdown of the second tranche of up
to $6m is conditional on further conditions precedent being met.
The facility is repayable in 10 equal installments over a five year
period and attracts an interest rate of US$LIBOR plus 5%.
Kalaa Mpinga, CEO of Mwana commented:
"We are delighted with IDC's support for Freda Rebecca. This
loan marks a significant development for project finance into
Zimbabwe. The production ramp-up at Freda Rebecca continues to
progress and our expansion to 50,000 ounces per annum is well
advanced."
For more information, please visit www.mwanaafrica.com or
contact:
Enquiries:
Mwana Africa PLC Tel: +44 (0)20 7654 5580
Oliver Baring - Executive Chairman
Nominated Adviser and Broker
Ambrian Partners Limited Tel: +44 (0) 20 7634 4700
Richard Swindells / Jen Boorer
Public Relations
Merlin Tel: +44 (0)20 7726 8400
David Simonson
Anca Spiridon
Notes to Editors
Mwana Africa
Mwana Africa PLC is a pan-African resources company with
operations in Zimbabwe and South Africa and exploration projects
and interests in the Democratic Republic of Congo, Angola, Ghana
and Botswana. The group has a diverse asset base including gold,
nickel, copper, cobalt and diamonds.
In October 2005, Mwana Africa became the first African-owned,
African-managed resource company to list on the Alternative
Investment Market of the London Stock Exchange, through a reverse
takeover of African Gold plc by a privately held mining company,
Mwana Africa Holdings (Pty) Limited. Mwana Africa Holdings (Pty)
Limited was itself formed in 2003.
Building on its track record and with its highly experienced
team, Mwana Africa intends to pursue mining opportunities across
the African continent, both independently and, where appropriate,
in partnership with other stakeholders.
About the Industrial Development Corporation
The IDC is a self-financing, South African state-owned national
development finance institution that provides finance to promote
industrial and entrepreneurial development. Its primary objectives
are to contribute to balanced sustainable economic growth in Africa
and to the economic empowerment of the South African population,
thereby promoting the economic prosperity of all citizens of the
African continent.
Freda Rebecca
The Freda Rebecca gold mine is located near Bindura,
approximately 90 kilometres north-east of Harare.
Exploration, development and production history in the area
dates from 1912. The mine and plant complex were developed by Cluff
Gold and the production commenced in 1988. In 1996, the mine was
acquired by Ashanti Goldfields Zimbabwe which was itself acquired
by AngloGold in 2004.
In 2005 Mwana acquired Freda Rebecca from AngloGold. Mwana has
committed to sell a 15% stake to a local investor. Freda Rebecca
achieved production of 98,000 ounces of gold in 2002, however as a
result of the social and economic difficulties in Zimbabwe, output
from the mine declined sharply and the mine was placed onto care
and maintenance in 2007.
Following the announcement in February 2009 of revised export
procedures for gold produced in Zimbabwe, together with the
termination of the requirement to submit a proportion of foreign
currency earnings to the RBZ for conversion to Zimbabwe dollars,
Mwana Africa announced in March 2009 its intention to restart gold
production at the Freda Rebecca mine, followed by the first gold
pour at the mine in October 2009. The first phase of production
ramp up to 30,000oz per annum was completed in 2010, mining and
processing expansion to 50,000oz per annum currently under way.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEAEAPEDAFEAF
Asa Resource (LSE:ASA)
Historical Stock Chart
From Apr 2024 to May 2024
Asa Resource (LSE:ASA)
Historical Stock Chart
From May 2023 to May 2024