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Cradle Arc begins trading on AIM
African-focussed base and precious metals group Cradle Arc had its shares listed on AIM under its new name following the reverse takeover of Botswana's Mowana copper mine.
Cradle Arc, formerly known as Alecto Minerals, was refinanced through a convertible loan of £3.25m issued before the re-listing and a £2.4m placing, implying a £20.1m market cap for the restructured group.
Kevin van Wouw, Cradle's new chief executive and owner of Mowana, and its approximate inferred mineral resource of 758,000 tonnes of copper, purchased a 60% interest in Cradle on 13 November for £12.3m.
Van Wouw, said, "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$245m," he added.
As of 1400 GMT, shares had were trading at 11p each.