5th Sep 2013 07:45
LONDON (Alliance News) - Mwana Africa PLC Thursday said it has raised roughly USD3.2 million through a subscription of new ordinary shares by two existing shareholders.
The South Africa based mining company said it urgently needed funding after falling commodity prices hit company finances, and the subscription was part of this process.
The company said net proceeds from the subscription will go towards general working capital for the company's operations and is considered enough for it to meet its requirements in the near future.
Mwana Africa shares were up 0.21 pence, or 13% at 1.88 pence putting it top of the AIM movers in early morning trading Thursday.
The subscription was covered by two shareholders: China International Mining Group Corporation, which took 45.3 million shares, and Ning Yat Hoi, who subscribed for the remaining 85.0 million shares. The new shares subscribed represent 11.7% of the company's issued share capital.
"I am delighted with the support shown by CIMGC and Mr. Ning for the company. Our focus now is on driving down costs and extracting maximum value for shareholders from our asset portfolio," Non-Executive Chairman Mark Wellesley-Wood said in a statement.
By Tom McIvor; [email protected]; @TomMcIvor1
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