Alecto Minerals has announced that the due diligence phase, in respect of its proposed acquisition of the Mowana copper mine, is nearly at an end and it expects to commence marketing an equity fundraise shortly and to publish the admission document towards the end of June 2017.
The Company also provided the following background information:
"The Mowana mine returned to production in March 2017 and is expected to ramp up to 100,000 tonnes of ore processed this month with 3,286 tonnes of copper concentrate produced. Working capital in the ramp up phase has been provided by Alecto and Fujax Minerals and Energy Limited, Leboam's offtake partner.
"Alecto has raised, in aggregate, £1.8 million in 2017 to date through the issue of convertible loan notes. The majority of this funding has been lent to Leboam. Alecto has continued to develop its gold asset portfolio, in particular Zambia, but has focussed on minimising corporate costs in the run up to completing the Acquisition. Subsequent to the issue of the further convertible loan notes, announced on 7 June 2017, and after making further loan payments to Leboam, the Company currently has cash balances of approximately £140,000, which the directors believe is sufficient to cover expected corporate costs through to completion of the Acquisition on the current anticipated timetable. However, in the event that the Acquisition is delayed or does not complete, the Company would need to raise additional funds in July 2017 in order to continue as a going concern in light of its current status as an exploration and development business without any income generating production assets. Shareholders should note, however, that the directors have a high degree of confidence that the Acquisition will complete and will be a success, subject to completion of the requisite fundraising and shareholder approval."