Proactiveinvestors United Kingdom Cradle Arc PLC https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Cradle Arc PLC RSS feed en Mon, 17 Dec 2018 18:49:08 +0000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Cradle Arc suspended as loan deal falls through ]]> https://www.proactiveinvestors.co.uk/companies/news/210753/cradle-arc-suspended-as-loan-deal-falls-through-210753.html Botswana-based copper miner Cradle Arc PLC’s (LON:CRA) future was placed in severe doubt last night after a proposed US$4mln loan fell through.

Mining at the Mowana site has been suspended with trading in the junior’s shares also halted.

READ: Cradle Arc ticks up as it hails “vote of confidence” in Mowana project with working capital extension

Fujax Minerals provided US$1mln of the loan but wanted security over Mowana for all of its loans before it would provide the remainder.

Other secured lenders with a charge over the mine were not willing to agree to this, said Cradle Arc.

The board is seeking insolvency advice, said the statement.

 

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Fri, 07 Dec 2018 07:57:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210753/cradle-arc-suspended-as-loan-deal-falls-through-210753.html
<![CDATA[RNS press release - Suspension - Cradle Arc Plc ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181206165002_13894775/ Thu, 06 Dec 2018 16:50:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181206165002_13894775/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181206115925_13894358/ Thu, 06 Dec 2018 11:59:25 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181206115925_13894358/ <![CDATA[RNS press release - Conversion of Loan Notes & Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181128171633_13884212/ Wed, 28 Nov 2018 17:16:33 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181128171633_13884212/ <![CDATA[News - Cradle Arc ticks up as it hails “vote of confidence” in Mowana project with working capital extension ]]> https://www.proactiveinvestors.co.uk/companies/news/209440/cradle-arc-ticks-up-as-it-hails-vote-of-confidence-in-mowana-project-with-working-capital-extension-209440.html Cradle Arc PLC (LON:CRA) shares ticked up in early trading Monday after it hailed a “vote of confidence” in its Mowana copper mine in Botswana following an extension to its working capital facility for the project.

The firm said its 60% owned subsidiary, Leboam Holdings, had secured a US$4mln extension from Fujax Minerals and Energy Limited, an Africa-focused raw materials supplier, which would be used for general working capital at the project.

READ: Cradle Arc jumps as it obtains loan facility to improve processing facilities at Mowana project

It follows news in October that the company had secured a US$2mln loan from its largest shareholder to create an inventory of spare parts and improve and rehabilitate the processing facilities at Mowana.

Kevin van Wouw, chief executive of Cradle Arc, said that the extension was “a vote of confidence in the Mowana operations” and ensured that the company had “sufficient headroom and contingency” as it sought to recommence its production ramp-up.

Cradle also updated on the performance of the project in the fourth quarter.

Mowana had produced 140 tonnes of contained copper (Cu) in October compared to the original forecast of 392 tonnes, mainly due to intermittent equipment breakdowns at its processing plant which had impeded production.

However, Cradle added that following a series of repairs stable production was expected for the remainder of the quarter, with final concentrate grades achieved in the period to date above forecast levels.

A mill reline, planned for the last week of November, was also expected to see throughput at the mill increase to 155 tonnes per hour.

Recent testing on the main ore body in the north pit had also confirmed around 2mln tonnes of ore that is currently accessible, with metallurgical flotation test work (a method of extracting minerals from ores) returning copper recoveries of over 76%.

Van Wouw said that key improvement and rehabilitation works at the processing plant had largely been completed, saying the group expected “steady improvement in performance of the project over the coming months”.

Shares were up 1.2% at 0.8p.

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Mon, 19 Nov 2018 08:16:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209440/cradle-arc-ticks-up-as-it-hails-vote-of-confidence-in-mowana-project-with-working-capital-extension-209440.html
<![CDATA[RNS press release - Working Capital Facility Extension & Ops Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181119070502_13871094/ Mon, 19 Nov 2018 07:05:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181119070502_13871094/ <![CDATA[RNS press release - Directorate Changes ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181102124448_13853448/ Fri, 02 Nov 2018 12:44:48 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181102124448_13853448/ <![CDATA[News - Cradle Arc raises £396,000 via placing to help complete improvement of processing facilities at the Mowana mine ]]> https://www.proactiveinvestors.co.uk/companies/news/208199/cradle-arc-raises-396000-via-placing-to-help-complete-improvement-of-processing-facilities-at-the-mowana-mine-208199.html Cradle Arc PLC (LON:CRA) has raised £396,000, before expenses, via a conditional placing to help complete the rehabilitation and improvement of the current processing facilities at the Mowana copper mine in Botswana

The African-focused base and precious metals exploration and production company said the placing of 44,000,000 new ordinary shares at a price of 0.90p each was made with certain new and existing shareholders.

READ: Cradle Arc jumps as it obtains loan facility to improve processing facilities at Mowana project

The group said the net proceeds of the placing will be used alongside the funding from the US$2.0mln loan facility provided to Leboam Holdings (Pty) Limited, the company's 60% owned subsidiary, by PenMin Botswana Proprietary Limited that was completed on 19 October 2018.

Cardle Arc said the rehabilitation and improvement of the Mowana copper mine are designed to address the intermittent breakdowns and interruptions that were the key reason for the company's inability to meet its production targets during Q3 2018.

Kevin van Wouw, Cradle Arc’s CEO, commented: “We are delighted to have completed this fundraise; we are busy applying the funds from the loan facility to improve the process plant to complement the hard work that has gone into the rehabilitation of the pit.

“We look forward to updating the market on our progress in the near future.”

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Wed, 31 Oct 2018 07:43:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/208199/cradle-arc-raises-396000-via-placing-to-help-complete-improvement-of-processing-facilities-at-the-mowana-mine-208199.html
<![CDATA[RNS press release - Placing to raise £396,000 gross ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181031071229_13848946/ Wed, 31 Oct 2018 07:12:29 +0000 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181031071229_13848946/ <![CDATA[RNS press release - US$2m Loan Facility Completed ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181019111755_13835711/ Fri, 19 Oct 2018 11:17:55 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181019111755_13835711/ <![CDATA[News - Cradle Arc renews licence on ground south of Mowana that could contain 50mln tonnes of ore ]]> https://www.proactiveinvestors.co.uk/companies/news/207057/cradle-arc-renews-licence-on-ground-south-of-mowana-that-could-contain-50mln-tonnes-of-ore-207057.html The mining licence in Botswana held by Cradle Arc Plc (LON:CRA) over 28.5 square kilometres of ground including the Thakadu open pit and Makala underground deposit has now been extended by the Ministry of Mineral Resources until 2020.

This licence is 70km south-east of the Cradle Arc’s flagship Mowana copper mine.

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

Thakadu was mined by its previous owners, with ore delivered to the Mowana processing plant, up to June 2015. The project has a JORC-compliant indicated mineral resource of 2.3mln tonnes at 1.11% copper and 11 grams per tonne silver, and an inferred resource of 5.4mln tonnes at 0.63% copper and 9 grams silver.

The combined deposits have the potential to contain a resource of over 50mln tonnes.

"We have always believed that the Makala and Thakadu deposits present a great opportunity for Cradle Arc,” said chief executive Kevin van Wouw.

“Thakadu ores were mined and transported to our Mowana copper mine by its previous owners as recently as 2015, so we have significant existing knowledge of the potential quality of the copper sulphide ore which also has significant silver credits.”

 

 

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Mon, 15 Oct 2018 08:25:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207057/cradle-arc-renews-licence-on-ground-south-of-mowana-that-could-contain-50mln-tonnes-of-ore-207057.html
<![CDATA[RNS press release - Extension of Thakadu and Makala Mining Licence ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181015070004_13827866/ Mon, 15 Oct 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181015070004_13827866/ <![CDATA[RNS press release - Conversion of Loan Notes & Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181011070007_13824309/ Thu, 11 Oct 2018 07:00:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181011070007_13824309/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181010164111_13824049/ Wed, 10 Oct 2018 16:41:11 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181010164111_13824049/ <![CDATA[News - Cradle Arc jumps as it obtains loan facility to improve processing facilities at Mowana project ]]> https://www.proactiveinvestors.co.uk/companies/news/206604/cradle-arc-jumps-as-it-obtains-loan-facility-to-improve-processing-facilities-at-mowana-project-206604.html Cradle Arc Plc (LON:CRA) shares jumped in late-afternoon trading Monday after it secured a loan facility to improve processing facilities at its Mowana copper project in Botswana.

The miner said it had obtained a loan of US$2mln from its largest shareholder, PenMin Botswana Proprietary Limited controlled indirectly by Cradle’s chief executive Kevin van Wouw, to create an inventory of spare parts and improve and rehabilitate the processing facilities at Mowana.

READ: Cradle Arc looking at financing options to improve processing facilities at Mowana

Specific areas to be addressed include pumping, piping, conveying and process control remediation and installation of standby equipment in parallel in areas where a breakdown has an immediate impact on production.

The project has recently suffered from a series of breakdowns and interruptions at the processing plant in the third quarter that had “adversely affected” the company’s production in the period.

The improvement work would begin immediately and was not expected to materially interrupt production, with van Wouw saying the work would allow the group to achieve a “significant improvement” in throughput and recovery in the fourth quarter relative to the third.

In the third quarter, total production was reported at 712 tonnes of contained copper, 29.5% higher than the second quarter.

Shares were up 4.1% at 1.2p.

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Mon, 08 Oct 2018 15:14:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/206604/cradle-arc-jumps-as-it-obtains-loan-facility-to-improve-processing-facilities-at-mowana-project-206604.html
<![CDATA[RNS press release - Operational Update, Proposed Loan Facility ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181008110438_13820124/ Mon, 08 Oct 2018 11:04:38 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181008110438_13820124/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181005123849_13818636/ Fri, 05 Oct 2018 12:38:49 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181005123849_13818636/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181004090305_13816358/ Thu, 04 Oct 2018 09:03:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181004090305_13816358/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181001143001_13811592/ Mon, 01 Oct 2018 14:30:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20181001143001_13811592/ <![CDATA[News - Cradle Arc looking at financing options to improve processing facilities at Mowana ]]> https://www.proactiveinvestors.co.uk/companies/news/205956/cradle-arc-looking-at-financing-options-to-improve-processing-facilities-at-mowana-205956.html Cradle Arc Plc (LON:CRA) is confident it is putting the issues at its Mowana mine behind it, with the company reportedly making “good progress” at the Botswanan copper project.

Shares jumped 8.5% early on Friday morning to 1.79p.

Mowana has been beset by teething problems since it was brought back into production in April, but investors have been assured that these issues are being actively addressed. Cradle is now looking at its financing options which would allow it to improve and rehabilitate the current processing facilities and establish an inventory of spare parts.

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

It hopes this will prevent any further plant breakdowns which have occasionally disrupted production so far.

The company said it is still anticipating a pick-up in production in the final quarter of the year, although guidance is under review because of the past issues.

“During this reporting period, the company has undertaken a number of important and necessary activities to ensure that the company is best positioned to deliver on its strategy of future growth,” said chief executive Kevin van Wouw.

“Following the enlarged group's admission to trading on AIM, an in-depth review of all mining activities was implemented leading to a revised mine and accelerated development plan with a strategic objective to progress to a higher grade and increased levels of production.”

He added: “In spite of continued sporadic interruptions being experienced at the processing plant, we have made good progress with our open-pit mining activities with a large amount of waste stripping completed and are focussed on getting Mowana on a sound and sustainable footing.”

During the first half, a JORC mineral resource estimate for Mowana was revised up 37%, now comprising a measured and indicated resource of 55mln tonnes at 1.17% copper for 640,000 tonnes of contained copper.

Revenue increased to £1.49mln in the six months ended June 30 (H1 17: £0.28mln), while pre-tax losses widened to £5.49mln (H1 17: loss of £0.73mln).

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Fri, 28 Sep 2018 09:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/205956/cradle-arc-looking-at-financing-options-to-improve-processing-facilities-at-mowana-205956.html
<![CDATA[RNS press release - Interim results for six months ended 30 June 2018 ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180928070010_13808033/ Fri, 28 Sep 2018 07:00:10 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180928070010_13808033/ <![CDATA[News - Cradle Arc’s van Wouw sees decades of production ahead despite teething troubles at start-up ]]> https://www.proactiveinvestors.co.uk/companies/news/205605/cradle-arcs-van-wouw-sees-decades-of-production-ahead-despite-teething-troubles-at-start-up-205605.html 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.

Review

The overall target of 4,000 tonnes for the second half of 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."

 

 

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Tue, 25 Sep 2018 07:37:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/205605/cradle-arcs-van-wouw-sees-decades-of-production-ahead-despite-teething-troubles-at-start-up-205605.html
<![CDATA[RNS press release - Operational Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180925070013_13802865/ Tue, 25 Sep 2018 07:00:13 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180925070013_13802865/ <![CDATA[Media files - Cradle Arc PLC renews two prospecting licences 'with significant potential' ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/10556/cradle-arc-plc-renews-two-prospecting-licences-with-significant-potential--10556.html Fri, 21 Sep 2018 10:57:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/10556/cradle-arc-plc-renews-two-prospecting-licences-with-significant-potential--10556.html <![CDATA[News - Cradle Arc renews prospecting rights north of Mowana deposit ]]> https://www.proactiveinvestors.co.uk/companies/news/204895/cradle-arc-renews-prospecting-rights-north-of-mowana-deposit-204895.html 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 --

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Fri, 14 Sep 2018 07:29:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/204895/cradle-arc-renews-prospecting-rights-north-of-mowana-deposit-204895.html
<![CDATA[RNS press release - Prospecting Rights Renewed Along Strike of Mowana ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180914070009_13790599/ Fri, 14 Sep 2018 07:00:09 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180914070009_13790599/ <![CDATA[RNS press release - Results of General Meeting ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180913173229_13790371/ Thu, 13 Sep 2018 17:32:29 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180913173229_13790371/ <![CDATA[RNS press release - Resignation of joint broker ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180912170001_13788694/ Wed, 12 Sep 2018 17:00:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180912170001_13788694/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180912123323_13788356/ Wed, 12 Sep 2018 12:33:23 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180912123323_13788356/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180911115127_13786607/ Tue, 11 Sep 2018 11:51:27 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180911115127_13786607/ <![CDATA[News - Cradle Arc signs joint venture deal with Indiana Resources to advance Kossanto West ]]> https://www.proactiveinvestors.co.uk/companies/news/204492/cradle-arc-signs-joint-venture-deal-with-indiana-resources-to-advance-kossanto-west-204492.html 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."

 

 

 

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Mon, 10 Sep 2018 07:33:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/204492/cradle-arc-signs-joint-venture-deal-with-indiana-resources-to-advance-kossanto-west-204492.html
<![CDATA[RNS press release - Joint Venture at Kossanto West Gold Project ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180910070007_13783848/ Mon, 10 Sep 2018 07:00:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180910070007_13783848/ <![CDATA[RNS press release - Directorate Changes ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180905090002_13779438/ Wed, 05 Sep 2018 09:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180905090002_13779438/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180904143243_13778484/ Tue, 04 Sep 2018 14:32:43 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180904143243_13778484/ <![CDATA[Media files - Cradle Arc PLC getting to grips with issues at Mowana ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/10285/cradle-arc-plc-getting-to-grips-with-issues-at-mowana-10285.html Thu, 30 Aug 2018 16:02:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/10285/cradle-arc-plc-getting-to-grips-with-issues-at-mowana-10285.html <![CDATA[News - Cradle Arc cuts 2018 production guidance from Mowana Copper Mine after some operational setbacks ]]> https://www.proactiveinvestors.co.uk/companies/news/203769/cradle-arc-cuts-2018-production-guidance-from-mowana-copper-mine-after-some-operational-setbacks-203769.html 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.

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Wed, 29 Aug 2018 08:43:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/203769/cradle-arc-cuts-2018-production-guidance-from-mowana-copper-mine-after-some-operational-setbacks-203769.html
<![CDATA[RNS press release - Operational & Production Update and Board Changes ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180829070006_13770582/ Wed, 29 Aug 2018 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180829070006_13770582/ <![CDATA[RNS press release - Notice of General Meeting ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180823070013_13765331/ Thu, 23 Aug 2018 07:00:13 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180823070013_13765331/ <![CDATA[RNS press release - Additional Warrant Exercise ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180803102342_13743153/ Fri, 03 Aug 2018 10:23:42 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180803102342_13743153/ <![CDATA[News - Cradle Arc heads off share dilution by agreeing to buy back convertible loan notes ]]> https://www.proactiveinvestors.co.uk/companies/news/201993/cradle-arc-heads-off-share-dilution-by-agreeing-to-buy-back-convertible-loan-notes-201993.html 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.

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Wed, 01 Aug 2018 08:38:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/201993/cradle-arc-heads-off-share-dilution-by-agreeing-to-buy-back-convertible-loan-notes-201993.html
<![CDATA[RNS press release - Appointment of Joint Broker ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180801070101_13738835/ Wed, 01 Aug 2018 07:01:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180801070101_13738835/ <![CDATA[RNS press release - Convertible Notes Redemption and Issue of Equity ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180801070003_13738753/ Wed, 01 Aug 2018 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180801070003_13738753/ <![CDATA[News - Cradle Arc exits non-core project in Burkina Faso ]]> https://www.proactiveinvestors.co.uk/companies/news/200105/cradle-arc-exits-non-core-project-in-burkina-faso-200105.html 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.”

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Wed, 04 Jul 2018 08:19:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200105/cradle-arc-exits-non-core-project-in-burkina-faso-200105.html
<![CDATA[RNS press release - Update on non-core assets ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180704070004_13704570/ Wed, 04 Jul 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180704070004_13704570/ <![CDATA[Media files - New mine plan delivering increased production for Cradle Arc Plc ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9734/new-mine-plan-delivering-increased-production-for-cradle-arc-plc-9734.html Thu, 28 Jun 2018 15:53:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9734/new-mine-plan-delivering-increased-production-for-cradle-arc-plc-9734.html <![CDATA[RNS press release - Results of AGM and Warrant Issue ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180628144150_13697900/ Thu, 28 Jun 2018 14:41:50 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180628144150_13697900/ <![CDATA[News - Cradle Arc looking forward to enhancing Mowana into a world-class copper mining asset ]]> https://www.proactiveinvestors.co.uk/companies/news/199761/cradle-arc-looking-forward-to-enhancing-mowana-into-a-world-class-copper-mining-asset-199761.html 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.

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Thu, 28 Jun 2018 08:22:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/199761/cradle-arc-looking-forward-to-enhancing-mowana-into-a-world-class-copper-mining-asset-199761.html
<![CDATA[RNS press release - Full year results for year ended 31 December 2017 ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180628070516_13696670/ Thu, 28 Jun 2018 07:05:16 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180628070516_13696670/ <![CDATA[News - Cradle Arc reaches operational break-even at the Mowana copper project in Botswana ]]> https://www.proactiveinvestors.co.uk/companies/news/199557/cradle-arc-reaches-operational-break-even-at-the-mowana-copper-project-in-botswana-199557.html 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 --

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Tue, 26 Jun 2018 08:14:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/199557/cradle-arc-reaches-operational-break-even-at-the-mowana-copper-project-in-botswana-199557.html
<![CDATA[RNS press release - Operational Update and 2018 Production Guidance ]]> https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180626070452_13693121/ Tue, 26 Jun 2018 07:04:52 +0100 https://www.proactiveinvestors.co.uk/companies/rns/3746/LSE20180626070452_13693121/