Base metals explorer African Copper plans to restart the Mowana mine in Botswana by the end of August, following a financing arrangement with its major shareholder, the company said.
Zambian Copper Investments (ZCI), which owns a majority stake in African Copper, has reviewed the project and agreed to provide funds to restart the mine, which was put on care-and-maintenance earlier this year, miningweekly.com reports.
The financing package with ZCI includes two secured bridging loan facilities of $7m and $25.4m, as well as a four-year secured part convertible credit facility of about $31m.
ZCI has also subscribed for 676.5 million new shares at 1p a share, totalling $9.9m.
The ZCI shareholder approval of the loan facility is expected in September.