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.”