viewCradle Arc PLC

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

The firm said its 60% owned subsidiary, Leboam Holdings, had secured a US$4mln extension from Fujax Minerals and Energy, an Africa-focused raw materials supplier

Mowana produced 140 tonnes of contained copper in October

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.

Quick facts: Cradle Arc PLC

Price: - -

Market: LSE
Market Cap: -

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


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...

In exchange for publishing services rendered by the Company on behalf of Cradle Arc PLC named herein, including the promotion by the Company of Cradle Arc PLC in any Content on the Site, the Company receives from...


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

Kevin van Wouw, chief executive of Cradle Arc Plc (LON:CRA) tells Proactive's Andrew Scott they've renewed prospecting licences for an area north of its Mowana copper mine in Botswana. He says two renewals have been granted by the Botswana Ministry of Minerals, Energy and Water Resources...

on 21/9/18

2 min read