JOHANNESBURG (miningweekly.com) – BMR Group has, through the placement of 9.3-million new ordinary shares at 3.75p apiece, raised £350 000 before expenses.
The Aim-listed company will use the proceeds to further its Kabwe lead and zinc mine, in Zambia, where civil construction works are under way.
BMR noted that the plant construction remained on track for completion in the fourth quarter, ahead of the start of commissioning by the end of the year, subject to equipment suppliers meeting their delivery schedules.
The company has requested the Zambian Electricity Supply Commission to supply a third 500 kVA transformer to ensure adequate capacity before plant commissioning.
"We have given detailed consideration to the cash requirements of the company over the next few months for the Kabwe plant construction as well as for necessary working capital.
“We concluded that it is in shareholders' best interests for this small fundraise to be completed without further delay while we remain in frequent discussions with African Compass International (ACI) over our first drawdown request under the project construction, for the awaited initial $900 000,” BMR chairperson Alex Borrelli commented.
On the basis of the current fundraising and, subject to ACI satisfying its commitments under that facility agreement, the company believes the construction of the Kabwe plant is fully funded.