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Rejuvenated Cradle Arc focused on copper and gold

Cradle Arc has been refinanced through a £3.25mln convertible loan issue prior to the re-listing and a £2.4mln placing at 10p

copper wires
Mowana will produce 12,000 tpa intitally

Copper-miner, Cradle Arc PLC(LON:CRA),  made a steady start on its return to AIM following the reverse takeover of the Mowana copper mine in Botswana.

Shares were trading at 11p, valuing the group at about £22mln.

Cradle Arc has been refinanced through a £3.25mln convertible loan issue prior to the re-listing and a £2.4mln placing at 10p. 

Fund raise

In addition, Cradle Arc intends to raise up to a further £500,000 for shareholders from an open offer.

Mowana’s vendor Kevin Van Wouw is the new chief executive with a 57.4% stake in the enlarged company.

The purchase of 60% of Cradle Arc, which owns 100% of Mowana, was eventually concluded on November 13 last year.

Mowana and Matala

Mowana, in north-east Botswana, has a mineral resource of 686,000 tonnes copper in the Measured and Indicated categories (JORC-code compliant) with an additional 758,000 tonnes in the Inferred category.

The company also has gold assets in Zambia, where the Matala project has a JORC-compliant gold resource of 568,000 oz at a grade of 2.7g/t.

Cradle Arc bought its 60% stake in Mowana for £12.3mln, compared to a cost of more than US$170mln originally to get into production.

Mowana also has a net present value currently of US$87mln, which can rise to US$245mln following certain planned plant upgrades, said the company.

Kevin van Wouw added: "The central pillar of our portfolio is Mowana, an established copper mine in Botswana, which is currently in production and ramping up to approximately 12,000tpa of saleable copper per annum, at an all in cash cost of US$4,400/t versus a current copper price of US$6,897/t. 

"Our plans to expand and optimise Mowana, primarily through the implementation of a DMS pre-concentration process, considerably improve the economics of this asset and can potentially raise the total project NPV significantly, to US$245mln. 

"Our strategy is centred on applying new mining models and techniques, to achieve cash positive production from proven mining assets, having secured JV partnerships for our Mali assets, to maximise value in the near term for our shareholders. " 

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