Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Alecto Minerals raises £800,000; hopes for AIM re-admission by end June

The cash raised will be used to help fulfil the working capital requirements at its recently-acquired Mowana copper mine in Botswana
Mowana copper mine, Botswana
Alecto needs to complete the reverse takeover of Cradle Arc Investments, owner of the Mowana mine, which it says it is progressing

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.

View full CRA profile View Profile

Cradle Arc Plc Timeline

Related Articles

Gold bullion
March 11 2018
An expanded prefeasibility study has confirmed the potential to generate annual production of 200,000 ounces at Matilda-Wiluna.
gold mine
September 07 2018
The company says it is on track to hit production targets for 2018 of 27,000 ounces of gold and 1.7mln ounces of silver
Mt Marion lithium mine
August 23 2018
The company is in the process of demerging its titanium and vanadium assets.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use