Proactiveinvestors RSS feed en Wed, 18 Jul 2018 00:01:53 +0100 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[News - Cradle Arc exits non-core project in Burkina Faso ]]> Cradle Arc PLC (LON:CRA) has announced the disposal of assets in Burkina Faso which are deemed to be ‘non-core’ to the business.

It is disposing the company’s subsidiary Société Miniére de Kerboulé SARL (or SMK) which holds the wholly-owned Arae and Gassel-Manere exploration licences that together comprise the Kerboulé Gold Project.

WATCH: New mine plan delivering increased production for Cradle Arc

The company will receive a nominal fee of US$1 for the transaction, while the acquirer will assume all ongoing operating costs and SMK's liabilities. At the same time, the company is required to pay the acquirer the equivalent of US$17,700.

In a statement, Cradle Arc noted that since producing resource estimates for the project, back in 2015, access to the project has been “hampered by the deteriorating security situation” and it noted that armed extremist groups have been operating in the area.

“Accordingly, defining a path for further exploration through to potential development activities on both Arae and Gassel-Manere is not possible at this time,” the company said in a statement.

“The lack of near term production potential in comparison to what the company considers much lower risk, higher return investment at the company's Mowana mine has led to the disposal.”

Wed, 04 Jul 2018 08:19:00 +0100
<![CDATA[RNS press release - Update on non-core assets ]]> Wed, 04 Jul 2018 07:00:04 +0100 <![CDATA[Media files - New mine plan delivering increased production for Cradle Arc Plc ]]> Thu, 28 Jun 2018 15:53:00 +0100 <![CDATA[RNS press release - Results of AGM and Warrant Issue ]]> Thu, 28 Jun 2018 14:41:50 +0100 <![CDATA[News - Cradle Arc looking forward to enhancing Mowana into a world-class copper mining asset ]]> Cradle Arc Plc (LON:CRA), the owner of the Mowana copper project in Botswana, is encouraged by the long-term pricing fundamentals for copper.

The company said in its full-year results statement that the ramp-up to processing a targeted 12,000 tonnes a year of copper in concentrate continues to advance in accordance with the company's accelerated development plan.

READ: Cradle Arc reaches operational break-even at the Mowana copper project in Botswana

Over the coming months, the company will aim to progress its plans to add a dense media separation (DMS) pre-processing unit, as well as making other improvements, which should serve to further improve and enhance the extraction process.

Cradle Arc said its accelerated development plan would enable it to fast-track access to the deeper supergene and sulphide ores at Mowana, which have demonstrated better recoveries and grades, and in turn improve the overall economics of the project.

Since the commencement of the plan, the company has had two mining units working full time in the Mowana open pit and seen recoveries improve. A third mining unit is scheduled to be brought on-line before the end of June 2018, following which the company will focus on developing sufficient space in the mining pits to enable the fourth mining unit to commence operations towards the end of the third quarter of this year.

“From recovery levels of just 35% experienced in the oxide ores, we are now averaging recoveries of 56% on a steady state blending basis and up to 76% on the supergene material encountered at the current base of pit level at 940RL,” the company said.

The main focus of the group's financial activities in the financial year just ended was the acquisition of a majority interest in Mowana and funding of the re-commissioning of the mine.

The financial year saw the company earn £570,000 of revenues, comprising test production revenues from Mowana and fees from strategic partners.

A loss before tax of £13.8mln was mainly due to the £12.5mln write-down in the value of the company's Zambian exploration assets.

“Our focus remains firmly on building production and revenues. In support of this, the long-term pricing fundamentals for copper remain strong and our current ramp-up to pre-DMS nameplate capacity of 12,000 tonnes per annum continues to advance in accordance with our accelerated development plan,” said Toby Howell, the non-executive chairman of Cradle Arc.

Thu, 28 Jun 2018 08:22:00 +0100
<![CDATA[RNS press release - Full year results for year ended 31 December 2017 ]]> Thu, 28 Jun 2018 07:05:16 +0100 <![CDATA[News - Cradle Arc reaches operational break-even at the Mowana copper project in Botswana ]]> Cradle Arc PLC (LON:CRA) expects to achieve project-level operational cash flow break-even at the Mowana copper project in the month of June 2018.

Cash generation is expected to improve throughout the second half of this year, with the mine expected to produce at least 5,700 tonnes of contained copper during the period.

WATCH: Cradle Arc’s CEO: “It’s a very important day for us”

The ramp-up of mining activities at the Mine re-commenced in mid-April 2018 following the announcement of the company's accelerated mine development plan and US$10mln in new secured debt funding.

Full re-commissioning to steady state operations of the process plant is expected to be achieved by the end of the second quarter of this year.

"Our new development approach for the Mowana mine is now delivering the increased production planned as a result of the accelerated mine plan announced in April 2018,” said Kevin van Wouw, chief executive of Cradle Arc.

"Although it is still relatively early in the ramp-up stage of operations under the company's revised mine plan, I am delighted that the key performance criteria set by the board are currently being met and backed-up by actual operational data. This is an opportune time to be bringing on additional production to the copper market - positioning the company to take advantage of currently tight global supply conditions."

In early afternoon trading, Cradle Arc shares were 8.7% higher at 6.25p.

-- Adds share price --

Tue, 26 Jun 2018 08:14:00 +0100
<![CDATA[RNS press release - Operational Update and 2018 Production Guidance ]]> Tue, 26 Jun 2018 07:04:52 +0100 <![CDATA[News - Cradle Arc chief operating officer appointed director of business development ]]> Cradle Arc Inc (LON:CRA) chief operating officer Mark Jones will become the director of business development, focusing on seeking growth opportunities similar to the Mowana copper mine in Botswana.

The base and precious metals explorer said Jones will evaluate prospective assets in Africa that complement the company’s existing portfolio.

READ: Cradle Arc re-jigs mine plan at Mowana to speed up development

The Africa-focused group said chief executive Kevin van Wouw has taken operational responsibilities at Mowana as it “enters into a phase of significant growth” through the implementation of the DMS project, subject to securing requisite financing.

"As a company, we continue to evaluate new opportunities, and Mark's adoption of this new role represents an important step in our organic growth strategy,” said van Wouw.

“We are very grateful for Mark's input into the Mining Planning and Management of the maiden mining reserve estimate at Mowana, facilitating our accelerated development plan."

The company also announced that the exercise period of 35,668,420 new warrants to be issued has been extended by six months to 20 February 2020.

Mon, 18 Jun 2018 14:10:00 +0100
<![CDATA[RNS press release - Update on Management Change and Warrant Issue ]]> Mon, 18 Jun 2018 13:00:01 +0100 <![CDATA[RNS press release - Notice of AGM and Update re Warrant Issue ]]> Tue, 05 Jun 2018 07:00:08 +0100 <![CDATA[RNS press release - Second Price Monitoring Extn ]]> Thu, 31 May 2018 16:40:27 +0100 <![CDATA[RNS press release - Price Monitoring Extension ]]> Thu, 31 May 2018 16:35:26 +0100 <![CDATA[RNS press release - Second Price Monitoring Extn ]]> Thu, 31 May 2018 14:05:47 +0100 <![CDATA[RNS press release - Price Monitoring Extension ]]> Thu, 31 May 2018 14:00:35 +0100 <![CDATA[Media files - Cradle Arc’s CEO: “It’s a very important day for us” ]]> Thu, 31 May 2018 12:43:00 +0100 <![CDATA[RNS press release - Second Price Monitoring Extn ]]> Thu, 31 May 2018 11:05:53 +0100 <![CDATA[RNS press release - Price Monitoring Extension ]]> Thu, 31 May 2018 11:00:37 +0100 <![CDATA[News - Cradle Arc unveils maiden reserve for Mowana open pit ]]> Cradle Arc Plc (LON:CRA) has unveiled a maiden ore reserve for the open pit portion of the Mowana copper mine in northeast Botswana.

The new report, produced by Wardell Armstrong International (WAI), sees 31.8mln tonnes of proved and probable reserves at a grade of 1.17% of copper, representing 370,800 tonnes of contained copper.

Meanwhile, it increases the project’s measured and indicated resource increased to 55mln tonnes for a total of 640,000 tonnes of copper, a 37% expansion.

WATCH: Cradle Arc’s CEO: “It’s a very important day for us”

 Life of mine accordingly increases by 3 years to 14 years - also, some 34,500 tonnes worth of inferred resources are presently treated as waste, and not included as part of the life of mine plan.

The schedule anticipates average life of mine production of around 21,000 tonnes per year, peaking at 27,000 tonnes in year three.

Cradle Arc said the new reserve is estimated to be worth US$272.8mln (net present value) after tax.

"The successful completion of the Ore Reserve Estimate and upgrade of the Mineral Resource Estimate underpins the significant scale and long term commercial value potential of Mowana,” said Kevin van Wouw, Cradle Arc chief executive.

“WAI's independent assessment further supports our recently implemented accelerated development plan announced in April 2018, which we anticipate enabling us to reach steady state production and positive cash flows more rapidly, in addition to enabling management to make the final decision regarding the implementation of the DMS upgrades as we seek to ramp-up production and ultimately strengthen the value fundamentals of Mowana.”

He added: “Mining operations at Mowana have been ramping-up over the last six weeks and we currently have two mining units operating full time in the open pit. 

“These works will support a doubling of tonnage to the existing processing plant and the planned integration of DMS will then enable the plant to produce an average of approximately 21,000 tonnes of copper per annum, and up to 27,000 tonnes of copper in year 3, over a newly extended 14-year life of mine."

Thu, 31 May 2018 07:52:00 +0100
<![CDATA[RNS press release - Maiden Ore Reserve for Mowana Supports DMS Upgrade ]]> Thu, 31 May 2018 07:00:03 +0100 <![CDATA[News - Cradle Arc seeks new partner for Kossanto West gold project ]]> Cradle Arc Plc (LON:CRA) told investors that it will retain 100% of the Kossanto West gold project in Mali following Randgold Resources Plc (LON:RRS) decision to exit a partnership agreement made back in February 2016.

Randgold’s 65% participating interest in the two licences - Kobokoto Est and Koussikoto - that make up Kossanto West return to Cradle Arc , and the AIM-quoted explorer said it continues to believe the project is highly prospective.

Indeed, it highlighted that there has been considerable corporate activity in the immediate vicinity in recent months.

WATCH: Cradle Arc announces maiden JORC resource for Mawana project 

Additionally, Cradle Arc claimed it had received multiple expressions of interest from other exploration companies during the time it was partnered with Randgold, and said it would now seek a new partner for the continued exploration and advancement of the licences.

Going forward, Cradle Arc will now retain a comprehensive database of the results from Randgold’s field activities over the past two years. 

"Randgold have been an excellent JV partner to Cradle Arc over the past two years and their grassroots regional exploration campaigns have added significantly to our understanding of Kossanto West,” said Kevin van Wouw, Cradle Arc chief executive.

“As a result of the work performed to date, both by Randgold and Cradle Arc, we continue to believe in the prospectivity of Kossanto West and are confident that the extensive gold mineralisation that is present at multiple targets across this expansive 127 kilometre squared exploration project can be further proven up. 

He added: “We will now discuss the best development path with existing and potential partners to continue the exploration work."

Thu, 10 May 2018 07:39:00 +0100
<![CDATA[RNS press release - Termination of Kossanto West JV & Change of Office ]]> Wed, 09 May 2018 17:05:07 +0100 <![CDATA[RNS press release - Director Appointment ]]> Wed, 25 Apr 2018 08:33:16 +0100 <![CDATA[News - Cradle Arc enters option agreement for joint venture or sale of subsidiary ]]> Cradle Arc Plc (LON:CRA) said it has entered into an option agreement with Singa Holdings Zambia Private Limited to either establish a joint venture or acquire its subsidiary, Luiri Gold Mines Limited.

The AIM-listed precious metals explorer said the first option agreement would allow Singa to acquire Luiri, which holds the group’s Matala and Dunrobin gold assets in Zambia, for US$2.5mln until it expires on 1 July 2018.

WATCH: Cradle Arc announces maiden JORC resource for Mawana project

If the option agreement is exercised, following the acquisition of Luiri Cradle Arc will receive a royalty of 1.5% of gross revenue generated from the Matala and Dunrobin gold assets, up to a maximum aggregate amount of the net present value of US$2.5mln discounted at 8%.

The group added that it had also granted Singa an exclusive option, expiring on 30 June 2018, to form a joint venture for the operation of the Matala and Dunrobin assets.

If this option is agreed, any such joint venture terminates upon the commencement of commercial gold production. If Singa chooses to enter the joint venture, Cradle Arc said it has the right to require Singa to exercise the acquisition option.

Cradle Arc added that an option fee of US$30,000 was payable by Singa to the company in three equal monthly tranches from the date of the agreement.

Kevin van Wouw, chief executive of Cradle Arc, commented: "The development of our Zambian gold assets has long been an important goal for the Company.  We are, however, extremely mindful of the potential dilution that raising equity funds for the development of Matala could have on existing shareholders at the Company's current share price, and we therefore consider that this partnership with Singa represents the best path towards potential production in the near to mid-term.

He added: "Should the Share Option be exercised, the total amount payable to Cradle Arc would, in our view, represent fair value given the project's current stage of development and will support the Company's future strategy.  On exercise of the Share Option, the Company will receive US$2.5mln, which will contribute towards the cost of the planned Dense Media Separation (DMS) upgrades at the Group's Mowana Copper Mine, together with the potential future royalty stream."

Cradle Arc shares were steady at 6.98p in early trading Monday.

--Adds share price--

Mon, 16 Apr 2018 08:05:00 +0100
<![CDATA[RNS press release - Option Agreement for a JV and/or Sale of Luiri ]]> Mon, 16 Apr 2018 07:25:04 +0100 <![CDATA[Media files - Cradle Arc announces maiden JORC resource for Mawana project ]]> Tue, 03 Apr 2018 08:12:00 +0100 <![CDATA[News - Cradle Arc re-jigs mine plan at Mowana to speed up development ]]> Cradle Arc Plc (LON:CRA) is to accelerate the development of Mowana in Botswana to get the copper mine into profit more quickly.

The junior has also upgraded the copper resource using modern JORC standards to 861,000 tonnes of contained copper at a grade of 1.15%. Of that, measured and indicated resources are 466,000 tonnes of contained copper.

READ: Cradle Arc eyeing production expansion after ramp-up completes at Mowana

On a comparable basis, the total resource increased by 6%.

Kevin van Wouw, Cradle Arc’s chief executive, said the emphasis was now on increasing throughput and building towards profitability. 

The accelerated plan will see four mining units in service in the Mowana open pit to access ore below the 950m level.

A new US$10mln debt facility has been arranged to fund the new mine plan and also to refinance the offtake linked facility with Fujax.

WATCH: Cradle Arc announces maiden JORC resource for Mawana project

“The net funds raised will enable us to bolster our mining fleet, accelerate access to the supergene and sulphide ores where grades are higher and recoveries have been shown to be strong,” said Van Wouw.

Initial production at Mowana is expected to be 12,000 tonnes of copper each year rising to 20,000tpa eventually through the introduction of a processing technique known as dense media separation.

A maiden JORC (2012) ore reserve estimate for Mowana is scheduled for this quarter.

Tue, 03 Apr 2018 07:37:00 +0100
<![CDATA[RNS press release - Operational and Financial Update ]]> Tue, 03 Apr 2018 07:00:12 +0100 <![CDATA[RNS press release - Result of General Meeting ]]> Wed, 14 Mar 2018 12:00:01 +0000 <![CDATA[RNS press release - Statement re broker ]]> Fri, 02 Mar 2018 11:00:01 +0000 <![CDATA[RNS press release - Conversion of Loan Notes & Total Voting Rights ]]> Thu, 01 Mar 2018 16:00:01 +0000 <![CDATA[RNS press release - Notice of General Meeting ]]> Mon, 26 Feb 2018 16:00:01 +0000 <![CDATA[RNS press release - Conversion of Loan Notes & Total Voting Rights ]]> Thu, 15 Feb 2018 08:45:01 +0000 <![CDATA[RNS press release - Conversion of Loan Notes & Total Voting Rights ]]> Tue, 06 Feb 2018 16:30:01 +0000 <![CDATA[News - Cradle Arc eying production expansion after ramp-up completes at Mowana ]]> The London market has a new copper producer.

Cradle Arc Resources PLC (LON:CRA) made its debut on AIM on January 24 and has immediately hit the market with a couple of positive updates.

READ: Cradle Arc to push ahead with process enhancements at Mowana copper mine

The key though, is the existing production as chief executive Kevin van Wouw explains.

“We spent last year putting the mine into production,” he says.

“It’s now owner operated, and early in February the last piece of equipment will be delivered. That puts us in a position where we can reach nameplate capacity.”

That’s currently set at 12,000 tonnes of copper in concentrate per year, although plans are already well advance to push that on up to at least 20,000 tonnes in due course.

That profile of rising production, particularly when set against the backdrop of a strong copper market, proved an enticing prospect for London investors last year, when Cradle Arc was marketing.

Once the company had completed its reversal of the Mowana asset into what was then called Alecto, it was able to go out for £3.25mln in pre-IPO money, securing a further £2.4mln on admission.

WATCH: Cradle Arc PLC back on AIM and fired up over Mowana potential

Cradle Arc is thus a straightforward enough proposition: a well-capitalised copper producer with plans to increase output and a clear idea of how to do so.

“We will get Wardell Armstrong to do a new block model resource to confirm the life of mine,” says van Wouw.

Already a key component is in.

Cradle Arc reported on 31 January that a study by the well-known mining consultant SGS has confirmed the viability of using dense media separation techniques to separate ore from waste at Mowana.

The impact is likely to be significant and could, as part of the feasibility study, boost the net present value of Mowana from the current US$87mln to upwards of US$245mln.

Part of that value uplift would come from confirmation of the viability of increasing output to as much as 22,000 tonnes per year, and there would be corresponding economies of scale.

At this stage, it’s estimated that the application of the dense media separation option to the expanded operation would result in an internal rate of return (IRR) of 55%.

To formalise those estimates, the technical information gleaned from the SGS study will now be plugged into the work Wardell is undertaking.

Copper outlook positive

But at this stage, Van Wouw puts the overall cost of putting the second phase into production at around US$20mln.

In the meantime, the outlook for copper continues to be positive.

Van Wouw is bullish in the short-to-medium term in the context of the general infrastructure spend in emerging markets. He also points out that although there has been steady upward momentum for some time, there are no signs yet of a bubble developing.

It all sets a useful context for Cradle Arc to initiate expansion, and Botswana’s continuing political stability provides the perfect backdrop.

One route will be through the Makala project, which lies 70 kilometres away from Mowana. “There is a historic resource that grades 1.8% copper and one ounce of silver per tonne,” says van Wouw.

Extra upside will come too, from the company’s gold activities in Zambia, where it has a contract to design, build and operate a gold mine called Matala.

That’s currently in the midst of being funded, so watch this space.

Mon, 05 Feb 2018 11:52:00 +0000
<![CDATA[News - Cradle Arc to push ahead with process enhancements at Mowana copper mine ]]> CradleArc Plc(LON:CRA) should be able to use Dense Media Separation (DMS) to boost production substantially at the Mowana copper mine in Botswana.

An independent test report from SGS South Africa confirmed its suitability and Cradle Arc now intends to go ahead and install a plant.

WATCH: Cradle Arc PLC back on AIM and fired up over Mowana potential

DMS is a pre-production process that concentrates the metals in ore and potentially will increase production at Mowana by more than 80% to approximately 22,000tpa of copper in concentrate.

Costs would also be lower, with the estimated value of the project forecast to rise to US$245mln from US$87mln through the use of DMS.

The test work demonstrated that pre-concentration can be deployed at Mowana on all low oxide ores, Cradle Arc said.

A new block model for the resource at Mowana is also being prepared, which will enable a new mining schedules that incorporate the DMS study results. 

Kevin van Wouw, Cradle Arc’s chief executive, said: "Our expectation that DMS upgrades should be deployed at Mowana has been confirmed by SGS's report. 

READ: Cradle Arc to rejoin AIM next week following Mowana acquisition

“We are confident that we can rapidly move the Mowana mine from operating at its current nameplate capacity capable of producing 12,000 tonnes Cu per annum to more than 20,000 tonnes Cu per annum.

This is expected to dramatically improve cash flows as well as the net present value, he added.

The initial phase of DMS preparatory work will be completed this quarter.

Wed, 31 Jan 2018 08:50:00 +0000
<![CDATA[RNS press release - Test Work Confirms the DMS Applicability, Mowana ]]> Wed, 31 Jan 2018 07:00:05 +0000 <![CDATA[RNS press release - Holding(s) in Company ]]> Tue, 30 Jan 2018 17:35:02 +0000 <![CDATA[RNS press release - Conversion of Loan Notes & Total Voting Rights ]]> Fri, 26 Jan 2018 16:30:01 +0000 <![CDATA[Media files - Cradle Arc PLC back on AIM and fired up over Mowana potential ]]> Wed, 24 Jan 2018 11:17:00 +0000 <![CDATA[RNS press release - Align Research initiation of coverage ]]> Wed, 24 Jan 2018 07:15:01 +0000 <![CDATA[RNS press release - Admission to AIM and First Day of Dealings ]]> Wed, 24 Jan 2018 07:00:04 +0000 <![CDATA[News - Cradle Arc to rejoin AIM next week following Mowana acquisition ]]> Copper miner Alecto Minerals is set to return to AIM next week (24 January) under its new name Cradle Arc PLC.

The junior completed the reverse takeover of the Mowana copper mine in Botswana in November, paving the way for a re-financing and re-listing.

READ: Alecto Minerals to lose AIM listing as Mowana completion drags on

An AIM Schedule One (pre-listing) announcement indicated Cradle Arc will be valued at £20.1mln following a £2.4mln fund raise.

Mowana’s vendor Kevin Van Wouw will be chief executive with a 57.4% stake in the enlarged company.

Institutions City Financial and Hadron Capital will own 10.55% and 3.59% respectively.

Alecto originally agreed to buy Mowana more than a year ago (in December 2016) but had its listing cancelled as the deal was not completed within the junior market’s time deadlines.

The purchase of 60% of Cradle Arc, which owns 100% of Mowana, was eventually concluded on November 13 last year.

Mowana, in north-east Botswana, has a mineral resource of 686,000 tonnes copper in the Measured and Indicated categories (JORC-code compliant) with an additional 758,000 tonnes in the Inferred category.

The company also has gold assets in Zambia.

Fri, 19 Jan 2018 12:10:00 +0000
<![CDATA[News - Alecto Minerals to lose AIM listing as Mowana completion drags on ]]> Alecto Minerals PLC (LON:ALO) is to lose its AIM listing due to the prolonged suspension of its shares while the proposed acquisition of the Mowana copper mine in Botswana progresses.

Shares in Alecto have been suspended since 21 December 2016 while it completes the admission document for the deal, which has been structured as reverse takeover.

Under AIM rules, six months is the maximum a company’s shares can be suspended.

Alecto has been granted one extension already, but has now been informed its listing will be cancelled on 11 July.

The junior added it still intends to proceed with the acquisition and to seek admission to trading for the enlarged group on AIM as a new applicant. 

Extensive technical, financial and legal due diligence on Mowana and its holding companies has been carried out  the results of which will be reflected in the admission document as appropriate. 

Indeed, Alecto re-started production at Mowana in March and to date approximately 4,300 tonnes of copper concentrate have been produced and sold to offtake partner, Fujax Minerals and Energy.  

However, Alecto warned that in the event the event that the Mowana acquisition does not complete on the expected timetable, more funds will be required without which it faces liquidation.

Wed, 05 Jul 2017 07:43:00 +0100
<![CDATA[News - Alecto says Mowana due diligence nearly complete, will seek funds to complete deal ]]> Alecto Minerals PLC’s (LON:ALO) due diligence on the Mowana copper mine in Botswana is nearly complete and it expects to start a funding exercise shortly to complete the deal.

The Mowana mine returned to production in March and is expected to ramp up to 100,000 tonnes of ore processed this month with 3,286 tonnes of copper concentrate produced.

Working capital in the ramp up phase has been provided by Alecto and Fujax Minerals and Energy Limited, the offtake partner of Alecto subsidiary Leboam. 

Alecto currently has cash balances of approximately £140,000, which tis sufficient to cover expected corporate costs through to completion of the acquisition on the current anticipated timetable.   

Alecto added it had also appointed mining heavyweight Roger Williams as a non-executive director with immediate effect.

Williams was previously CFO of Randgold Resources Limited and JSE-listed AECI Limited. He is interim Commercial Executive for Digby Wells and Associates, an environmental and social consultancy to the resources sector in Africa.

Fri, 09 Jun 2017 16:06:00 +0100
<![CDATA[News - Alecto Minerals raises £800,000; hopes for AIM re-admission by end June ]]> Alecto Minerals PLC (LON:ALO) has issued £800,000 worth of convertible loan notes to help fulfil the working capital requirements at its recently-acquired Mowana copper mine in Botswana.

The Africa-focused explorer told investors that the coming months are “expected to be transformational for Alecto” and that the fundraise announced today would help to support the business during the period.

If not converted into Alecto shares, the notes are repayable by 2 December 2017 and carry an interest rate of 20%.

WATCH: Mowana mine hitting full-time production 'all good stuff', says Alecto's Mark Jones

Interest payments will be satisfied through the issue of new Alecto shares at 0.06625p, which will result in 241.5mln shares being issued to the holders of the notes.

Instead of waiting to be paid back, the holders may opt to convert some or all of their notes into ALO shares during a 10-day period after the firm’s shares are readmitted to AIM - the shares are currently suspended at 0.07p.

The closing price of Alecto shares on the day they are readmitted will set an upper limit on the price at which the shares can be converted, while note holders may opt to convert the shares at 80% of the previous day's closing mid-market price if that is lower.

"We are pleased to secure this additional CLN facility which, together with the revenue currently being generated at the Mowana copper mine from ongoing copper concentrate production, will go towards fulfilling the mine's working capital requirements ahead of effecting the first phase of our full scale production plan at Mowana,” said chief executive Mark Jones.

“The coming months are expected to be transformational for Alecto and this CLN will support us while we drive our business forward.”

AIM re-admission by end of the month

In the same stock market announcement, Alecto told investors that it expects its shares – which have been suspended since the end of 2016 – to be readmitted to AIM by the end of June.

In order to achieve that, the company needs to complete the reverse takeover of Cradle Arc Investments, owner of the Mowana mine, which it says it is progressing.

Mowana production update

CEO Jones also gave a brief update on the operational performance of the mine, which is currently in the process of ramping up to full production capacity.

As noted last month, Jones said Mowana was still on track deliver production of 12,000 tonnes of copper concentrate in the third quarter of this year.

Wed, 07 Jun 2017 08:23:00 +0100
<![CDATA[Media files - Mowana mine hitting full-time production 'all good stuff', says Alecto's Mark Jones ]]> Mon, 15 May 2017 11:21:00 +0100 <![CDATA[News - Mowana copper mine in full-time production, says Alecto ]]> Alecto Minerals PLC (LON:ALO) has told investors that its Mowana copper mine in Botswana is now in full-time production.

That follows on from the first blast at the end of April and a successful trial period during which Aleecto produced saleable concentrate of up to 28% copper.

So far, the company has produced more than 1,900 tonnes of copper concentrate which is being sold to its offtake partner, Fujax.

WATCH: Mowana mine hitting full-time production 'all good stuff', says Alecto boss

“Mowana is now a full-time copper production operation and we look forward to gaining ownership of the project subject to shareholder approval at which point, we believe, our company will benefit from a significant value re-rating.,” said chief executive Mark Jones.

“Once effected, we will have taken control of a significant asset which has been subject to more than US$150mln of investment in the past for an acquisition price of approximately US$10mln.”

A step closer to resuming trading on AIM

The Competent Persons Report (CPR) on Alecto’s African assets has also been completed, which the firm said represented an “important milestone”.

It takes Alecto one step closer to the publication of the admission document which is needed in order to resume trading on the AIM market.

WATCH: Take a tour of the mine

The company reckons it will have the document published early next month (June), which would hopefully lead to readmission within the next six to eight weeks.

The CPR estimates a current resource of circa 172 million tonnes (Mt) at 0.84% copper at Mowana, of which 26Mt sits within two existing pre-stripped 350 metre-deep pits. 

READ: The Competent Persons Report in full

Allowing for some overlap, Alecto estimates the resource at 162Mt at 0.84% copper. That equates to around 481,000 tonnes of copper in the measured and indicated category and a further 732,000 tonnes of copper in the inferred category.

Alecto intends to ramp up to an annualised rate of 12,000 tonnes of copper in the third quarter of this year. That would give Mowana a net present value (NPV) of US$87.5mln for the initial 12,000 tonnes per annum production scenario based on an average copper price of US$2.80 a pound (lb).

Production costs at the mine are expected to average US$1.50/lb over the mine life based on an average metallurgical recovery of 91%.

Additional upside still at Mowana

The numbers make for decent reading for Alecto and its investors, but the firm reckons there are possible option which, if taken, could boost the project further.

It’s considering installing a Dense Media Separation (DMS) unit which could see throughput double to 2.6Mt per annum, yielding around 23,000 tonnes of copper by the third quarter of 2018.

That would send the mine’s net present value soaring to US$245mln.

A future underground operation could add value at Mowana too. It would let Alecto tap into the rest of the resource which is located down dip and along the strike from the open pits currently being mined.

If Alecto were to go underground, it could extend the life of mine to 20 years.

“We are delighted that the CPR demonstrates the compelling economics of our project even without the installation of a DMS, now that the asset is unencumbered by debt,” added Jones.

“Even better is that it starts to show the tremendous potential upside available using modern techniques identified by our experienced industry partners.”

Fri, 12 May 2017 09:50:00 +0100
<![CDATA[Media files - 'We are a solid proposition' says Alecto Minerals PLC as it appoints Capital Drilling at Mowana ]]> Fri, 24 Mar 2017 15:03:00 +0000 <![CDATA[News - Alecto Minerals powers ahead at Mowana, appoints Capital Drilling ]]> Alecto Minerals PLC (LON:ALO) has awarded London-listed group Capital Drilling Limited (LON:CAPD) the contract for Drill and Blast at its Mowana copper project in Botswana.

Mark Jones, Alecto’s chief executive, said: "We are moving at speed towards delivering continuous production and first sales at Mowana meaning that the atmosphere on site is buoyant, particularly given that the first blast is anticipated in just a matter of days. 

“It is significant that we have been able to sign up a company of Capital Drilling's profile to provide future Drill and Blast services, and with Giant already on site, our stockpile is increasing.” 

WATCH: Alecto a "solid proposition", says boss ...

Jones said that a local contractor will carry out the first production blast by the end of this month while Capital mobilises its equipment.

Giant Transport, the mining contractor for the project for an initial period of six months, has started work with the conventional crushing and screening circuit operating for two weeks, stockpiling crushed ore.

Test production has also now commenced, producing saleable concentrate up to 28% copper (Cu), which will comprise part of the first tranche of product to be delivered to Fujax Minerals and Energy Limited  under a five year copper offtake contract

This early test production will help the project’s value, Jones said, so the time for the shares to return from suspension on AIM has been pushed back until  end May.

“Most importantly, we have switched the plant back on as part of a test phase and this has been a great success, producing saleable copper concentrate. 

 "Of course, there are still some hurdles to overcome before we can announce that we are in full scale production, but our project is being de-risked on a continuous basis.”

The Mowana acquisition was announced  in December.

The deal will see Alecto acquire a 60% interest for about £6.7mln made up of £1mln cash and the rest in shares.

Alecto believes Mowana can be brought back into production for US$20mln, which will be met through offtake and vendor financing deals.

At a copper price of US$2.50 per lb, Alecto's internal estimate for the project's net present value is US$245mln.

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Wed, 22 Mar 2017 15:50:00 +0000