Proactive Investors - Run By Investors For Investors

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

The miner said it had obtained a loan of US$2mln from its largest shareholder to create an inventory of spare parts and improve and rehabilitate the processing facilities at Mowana
Loan money bags
Improvement work would begin immediately and was not expected to materially interrupt production

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.

View full CRA profile View Profile

Cradle Arc PLC Timeline

Related Articles

1556632618_shutterstock_249210421-(1).jpg
May 01 2019
Anglo Asian has built a successful track record of production, and is now ramping up exploration
Drill rig
November 20 2018
The gold exploration and development company is focused on Mali and Ghana in West Africa
1520338767_shutterstock_130308137.jpg
October 11 2018
Viscount Mining is sitting on two highly prospective gold projects in the USA

© Proactive Investors 2019

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