Proactiveinvestors RSS feed en Tue, 25 Sep 2018 09:40:30 +0100 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[News - Cradle Arc’s van Wouw sees decades of production ahead, in spite of teething troubles at start-up ]]> Cradle Arc Plc (LON:CRA) has now exposed approximately two million tonnes of accessible transitional and supergene ore at Mowana North pit and North Rim Extension of the Mowana copper project in Botswana.

Such material is anticipated to deliver improved recoveries at a reduced production cost over the remainder of the year and into 2019.

WATCH: Cradle Arc PLC renews two prospecting licenses 'with significant potential'

Meanwhile, there have been further processing interruptions due to intermittent equipment breakdowns and, most recently, a delay in the delivery of a new part for the primary crusher hydraulic power pack at the plant.

As a result, Cradle Arc now expects total third quarter production to be approximately 10% to 20% lower than its previous forecast.

Actual production of contained copper totalled 292 tonnes and 242 tonnes for July 2018 and August 2018 respectively.

Although the interruptions to processing operations have led to inefficiencies with respect to recovery rates, in light of the work completed on the open pit and the expectation of improved material throughput and recoveries going forward, the company is confident of an improvement in performance in the fourth quarter of 2018.

The overall target of 4,000 tonnes for the second half 2018 is, however, currently under review.

On a longer-term view, Cradle Arc continues to seek financing for its proposed Dense Media Separation upgrade project, but in light of the continued processing plant interruptions, the immediate focus will be on securing the requisite funding to improve and rehabilitate the current processing facilities.

"In spite of the continued sporadic interruptions being experienced at the Mowana processing plant, we have made good progress with our open pit mining activities with a large amount of waste stripping completed in order to lay the groundwork for a strong period of ore delivery going forward,” said chief executive Kevin van Wouw.

"Whilst production during the third quarter has been disappointing and our overall production guidance for the second half of 2018 is under review, we are working hard to get Mowana on a sound and sustainable footing for what could potentially be decades of production, given the recent renewal of our permits along strike to the north of the open pit."



Tue, 25 Sep 2018 07:37:00 +0100
<![CDATA[RNS press release - Operational Update ]]> Tue, 25 Sep 2018 07:00:13 +0100 <![CDATA[Media files - Cradle Arc PLC renews two prospecting licenses 'with significant potential' ]]> Fri, 21 Sep 2018 10:57:00 +0100 <![CDATA[News - Cradle Arc renews prospecting rights north of Mowana deposit ]]> Cradle Arc PLC (LON:CRA) has renewed prospecting licenses for an area north of its Mowana copper mine in Botswana.

The AIM-listed metals miner said the two renewals had been granted by the Botswana Ministry of Minerals, Energy and Water Resources for a period of two years, with a proposed work plan to conduct further geophysics to extend the resource through the northernmost permit area with a maiden drilling programme to prove mineralisation in the known structure.

READ: Cradle Arc signs joint venture deal with Indiana Resources to advance Kossanto West

Cradle said there was potential to increase the combined strike length to 36km from the current 5km within the Mowana license area, which hosts a measured and indicated resource of 55mln tonnes at 1.17% copper (Cu) for 640,000 tonnes of contained copper and Inferred resource of 20mln tonnes at 1.08% Cu for 220,000 tonnes of contained copper.

The firm added that to date, the northernmost drill holes in the license have returned high-grade intercepts, with Hole MWN007 returning 50 meters at 2.11% TCu from 667m depth, and Hole MWN025 returning 19.28m at 2.94% TCu from 272.38m.

Kevin van Wouw, chief executive of Cradle Arc, said that historical data had shown the shear zone passed through both of the renewed permit areas and that the likelihood of mineralisation was “very high”.

He added that there was “significant potential” for future underground workings and a substantial mine life for the Mowana project.

In late-morning trading Friday, shares were steady at 3.8p.

-- Adds share price --

Fri, 14 Sep 2018 07:29:00 +0100
<![CDATA[RNS press release - Prospecting Rights Renewed Along Strike of Mowana ]]> Fri, 14 Sep 2018 07:00:09 +0100 <![CDATA[RNS press release - Results of General Meeting ]]> Thu, 13 Sep 2018 17:32:29 +0100 <![CDATA[RNS press release - Resignation of joint broker ]]> Wed, 12 Sep 2018 17:00:01 +0100 <![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 12 Sep 2018 12:33:23 +0100 <![CDATA[RNS press release - Holding(s) in Company ]]> Tue, 11 Sep 2018 11:51:27 +0100 <![CDATA[News - Cradle Arc signs joint venture deal with Indiana Resources to advance Kossanto West ]]> Cradle Arc Plc (LON:CRA) has entered into a joint venture with Mukuyu Resources (Mali) LTD for the exploration and development of Cradle Arc's 137 square kilometre Kossanto West gold project in western Mali.

Mukuyu is a wholly owned subsidiary of Indiana Resources Limited (ASX:IDA).

WATCH: Cradle Arc PLC get ting to grips with issues at Mowana

Indiana will fund all costs up to and including the completion of a pre-feasibility study on the project.

On completion of a pre-feasibility study, Indiana Resources will hold a 65% participating interest and Cradle Arc will retain a 35% participating interest.

The initial work programme will include further geological mapping of Kossanto West, with potential follow up pitting and trenching activities and reconnaissance drilling.

"This agreement enables Cradle Arc to advance its highly prospective West African gold assets, whilst maintaining its primary strategic focus on the development of the Mowana copper mine,” said Kevin van Wouw, chief executive of Cradle Arc.

"The terms of the JV do not require Cradle Arc to fund exploration activities up to the PFS stage, such that accordingly there will be minimal impact on the company's balance sheet as we continue to focus on our core asset in Botswana.

"We are delighted to be working with Indiana Resources through their subsidiary, Mukuyu. Indiana Resources has a high-quality team in place and a complementary portfolio of assets in Mali."




Mon, 10 Sep 2018 07:33:00 +0100
<![CDATA[RNS press release - Joint Venture at Kossanto West Gold Project ]]> Mon, 10 Sep 2018 07:00:07 +0100 <![CDATA[RNS press release - Directorate Changes ]]> Wed, 05 Sep 2018 09:00:02 +0100 <![CDATA[RNS press release - Holding(s) in Company ]]> Tue, 04 Sep 2018 14:32:43 +0100 <![CDATA[Media files - Cradle Arc PLC getting to grips with issues at Mowana ]]> Thu, 30 Aug 2018 16:02:00 +0100 <![CDATA[News - Cradle Arc cuts 2018 production guidance from Mowana Copper Mine after some operational setbacks ]]> Cradle Arc PLC (LON:CRA) has cut its 2018 production guidance for its 60%-owned Mowana Copper Mine in Botswana after some operational setbacks during the third-quarter, but expects to ramp-up to full steady state production during the fourth quarter.

The African-focused base and precious metals exploration and production company also announced the proposed appointment of Roy Pitchford, as its non-executive chairman, and Michael Golding, as an additional non-executive director.

READ: Cradle Arc exits non-core project in Burkina Faso

It noted that Toby Howell, Cradle Arc's current chairman, has advised the company of his intention “to resign from his position to pursue his other business interests at the appropriate time.”

Kevin van Wouw, CEO of Cradle Arc, commented: "We are very happy to be securing the considerable mining experience of both Roy and Michael, in their respective future roles as Non-Executive Chairman and Non-Executive Director.

“The depth and range of experience brought into the company will bring new understanding of the challenges being experienced as Cradle Arc matures into an established copper producer."

Adverse impacts on drilling operations

In its operational update, Cradle Arc pointed out that In July 2018, drilling operations were adversely impacted for approximately three weeks due to breakdowns and the under-performance of a drilling contractor.

As a result, the lower volume of available ores being delivered to the processing plant, alongside the previously reported sporadic interruptions to processing due to plant outages, resulted in 45,224 tonnes of ore being milled in July 2018, leading to a lower than forecast 292 tonnes of contained copper being produced for the month.

It added that, in mid-August 2018, further intermittent breakdowns have been experienced, which also resulted in further considerable periods of processing downtime.

As a consequence of the further breakdowns experienced and the inherent inefficiencies of such sporadic stoppages at the processing plant, Cradle Arc said the total contained copper production for August 2018 is expected to be broadly in-line with the output achieved for July 2018 and therefore significantly below the company's original expectations, such that the project is not currently breaking even in terms of operational cash flow at the current run rate.

It added that, in light of the operational difficulties experienced in July and August 2018, the company has revised its guidance for expected total contained copper production in the second half of 2018 to 4,000 tonnes, with approximately 1,000 tonnes expected to be produced in the third-quarter and approximately 3,000 tonnes in the fourth quarter.

Significant fourth quarter uplift expected

The group said the anticipated significant quarterly uplift is due primarily to the change in ore types from transitional to supergene expected to be mined during that quarter.

Cradle Arc said it is currently in advanced negotiations in respect of obtaining the financing required for its planned Dense Media Separation (DMS) upgrades.

It added that the envisaged financing package includes an initial tranche of funding which is to be utilised to improve and rehabilitate the current processing facilities and procure an inventory of certain key spare parts, which should then serve to mitigate the occurrences of further processing plant breakdowns and interruptions during the critical ramp-up phase.

The company said it will now focus on developing sufficient space in the mining pits at Mowana to allow the fourth mining unit to commence operations during the fourth quarter of 2018, thereby enabling ramp-up to full steady state production.

The firm said it currently expects to reach the full nameplate processing rate of 1.2mln tonnes of ore per annum at Mowana during the fourth quarter of 2018.

In early morning trading, Cradle Arc shares had dropped 34.5% lower to 2.75p.

Wed, 29 Aug 2018 08:43:00 +0100
<![CDATA[RNS press release - Operational & Production Update and Board Changes ]]> Wed, 29 Aug 2018 07:00:06 +0100 <![CDATA[RNS press release - Notice of General Meeting ]]> Thu, 23 Aug 2018 07:00:13 +0100 <![CDATA[RNS press release - Additional Warrant Exercise ]]> Fri, 03 Aug 2018 10:23:42 +0100 <![CDATA[News - Cradle Arc heads off share dilution by agreeing to buy back convertible loan notes ]]> Cradle Arc (LON:CRA) has thrashed out a deal to redeem its convertible loan notes at a cost of £1.59mln.

Holders of the loan notes have agreed to suspend their conversion rights and accept redemption payments by way of staged and back-end weighted payments up to their scheduled maturity date of 31 December 2018.

The loan notes have a redemption value of £1.28mln and could have been converted into Cradle Arc shares at a significant discount (20 – 25%) to the current share price, so the agreement prevents current shareholders from having their stakes heavily diluted.

READ: Cradle Arc looking forward to enhancing Mowana into a world-class copper mining asset

Cradle Arc will pay for the redemption with funds raised from a share issue at 5p a share plus funds received from certain warrant holders exercising said warrants.

Subscribers to the share issue have chipped in £2.4mln; surplus funds left over after settling the redemption of loan notes will augment working capital for the company's Mowana copper mine in Botswana.

The capital structure has been simplified and strengthened

In yet more financial engineering, the company has also reached agreement to defer certain of its scheduled debt repayments as well as certain payments due to PenMin Botswana (Pty) Limited.

"I am pleased that we have been able to simplify and strengthen our capital structure through this series of financial transactions,” said Kevin van Wouw, the chief executive officer (CEO) of Cradle Arc.

“The new funds raised have primarily been derived from the early exercise of certain warrants held by existing shareholders and debt providers to the company. Taking into account the shares which may potentially have been issued on conversion of the convertible loan notes, we have effectively reduced the company's fully diluted proforma share capital,” he explained.

Cradle Arc said it plans to increase its effective equity interest in the Mowana project by pumping in at least US$1.5mln in new equity in Leboam Holdings, the owner of the Mowana mine.

Cradle Arc already has a 60% stake in Leboam, so it effectively control the company; the new equity will be acquired on a fair value basis to be determined by an independent firm of accountants.

"The planned purchase of additional equity in Leboam, Mowana's holding company, will serve to increase our attributable interest in the Mowana Mine, and thereby help to mitigate the dilution being experienced by existing shareholders from these transactions,” said van Wouw.

“Collectively, the increase in working capital headroom and planned additional equity investment in Leboam, reduces the group's risk profile at a time of volatile copper prices and better positions us to seek and secure the financing required to move forward with our DMS [dense media separation] expansion project in due course," the CEO said.

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

Cradle Arc plans to use DMS to boost production substantially at the Mowana copper mine.

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

Operational update on Mowana

On the subject of Mowana, the company said an additional drilling contractor has been established on site in order to augment the mine's drill and blast operations and the third mining unit has been brought on-line as scheduled; however, sporadic processing interruptions were experienced in early July 2018, due to process plant breakdown and power outages, predominantly in the tailings disposal systems.

As a result, the monthly volume of ore processed in July 2018 is now expected to be around 25% less than previously forecast. The processing interruptions have caused some short-term working capital pressures but some slack was built into the ramp-up plan and production guidance for the second half of 2018, therefore, remains unchanged, with Cradle Arc expecting to produce at least 5,700 tonnes of contained copper in the period.

Processing optimisation is ongoing as the company continues to ramp-up to steady-state production.

Shares in Cradle Arc were down three-eighths of a penny in early deals at 5.625p.

Wed, 01 Aug 2018 08:38:00 +0100
<![CDATA[RNS press release - Appointment of Joint Broker ]]> Wed, 01 Aug 2018 07:01:01 +0100 <![CDATA[RNS press release - Convertible Notes Redemption and Issue of Equity ]]> Wed, 01 Aug 2018 07:00:03 +0100 <![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