Alecto Minerals plc said it has raised £800,000 before expenses via the issue of further convertible loan notes with proceeds going towards fulfilling the Mowana Copper Mine’s working capital requirements ahead of effecting the first phase of our full scale production.
The Mowana Copper Mine, located in north east Botswana, is currently ramping up to full production capacity and, as announced on 12 May 2017, the Company is on track to deliver production of 12,000 tonnes of copper concentrate in Q3 2017.
Alecto is simultaneously progressing the completion of its acquisition of Cradle Arc Investments which, via its wholly owned subsidiary, owns the Mowana Copper Mine, which will constitute a reverse takeover (“RTO”) pursuant to the AIM Rules for Companies.
”Accordingly, the funds raised from the issue of the Notes will be used to provide a loan of up to US$1 million to Cradle to meet the working capital requirements of the Mowana Copper Mine during the ramp-up phase,” the company said.
The additional Notes have been subscribed for by certain clients (the “Noteholders”) of Beaufort Securities Limited, the Company’s broker and the Notes are repayable by the company on 2 December 2017 with interest at the fixed rate of 20%.
Mark Jones, CEO of Alecto said they 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.
“It is intended that, during Q3 2017, at least 12,000 tonnes of copper concentrate is produced from the Mowana Copper Mine and delivered to its offtake partner, ahead of making a decision regarding the construction of a Dense Media Separation plant, which has the potential to then double output at the mine. The coming months are expected to be transformational for Alecto and this CLN will support us while we drive our business forward.”