Publication of Bond Prospectus
01 December 2014
Mwana Africa is pleased to announce the publication by its 74.7% owned subsidiary, Bindura Nickel Corporation Limited ("BNC") of a prospectus in relation to the previously announced bond to help fund the restart of the Bindura Nickel Smelter.
Highlights:
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Prospectus for $20 million bond issue published and marketing commenced
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5 year term with 10% semi-annual coupon rate
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Expected to close late January 2015
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Liquid Asset Status granted by the Reserve Bank of Zimbabwe requiring Zimbabwean banking and other financial institutions to invest a minimum percentage of their assets in the Bond
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This is in addition to the bond's Prescribed Asset Status which allows it to be carried as such by Zimbabwean insurance and other long-term savings institutions
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The proceeds of the bond will be used to help fund the restart of the Bindura Nickel Smelter which will enable BNC to produce a nickel leach alloy which is expected to improve the achievable nickel price and lower operating costs. Any additional funding for the smelter will be provided out of existing BNC cash flows
Mwana Africa will provide a parent guarantee for the bond.
Kalaa Mpinga, CEO of Mwana, commented:
"We are pleased that BNC have published the prospectus in relation to the $20 million bond and look forward to updating the market on our progress over the coming months. We would like to thank the Reserve Bank of Zimbabwe as being awarded Liquid Asset Status allows BNC to widen the financial institutions that can support and participate in the bond, potentially increasing its liquidity and tradability. The restart of the smelter will allow in-country beneficiation and will provide significant benefits to BNC and Mwana".
For further information contact:
Mwana Africa PLC
Kalaa Mpinga, CEO
Caroline Mathonsi, Investor Relations
Tel: + 44(0) 203 696 5470
Nominated Adviser and Broker
Peel Hunt LLP
Matthew Armitt / Ross Allister
Tel: +44 (0) 20 7418 8900
Public Relations
Russell and Associates
Jim Jones / Leigh King
Tel: +27 (0) 11 880 3924