FREDA REBECCA gold mine located near Bindura has drawn down the first $4 million tranche of the $10 million loan facility provided by the Industrial Development Corporation of South Africa Ltd.
Mwana Africa PLC a group that has a diverse asset base including gold, nickel, copper, cobalt and diamonds and the first African-owned and managed resource company to list on the Alternative Investment Market (AIM) of the London Stock Exchange (LSE) made the announcement.
“Mwana Africa PLC is pleased to announce that its Zimbabwean subsidiary, Freda Rebecca Gold Mine Limited, has drawn down the first $4m tranche of the $10m loan facility provided by the Industrial Development Corporation of South Africa Ltd,” read the report.
Mr Kalaa Mpinga, CEO of Mwana said the loan by IDC marked a significant development for project finance into Zimbabwe.
“We are delighted with IDC's support for Freda Rebecca. This loan marks a significant development for project finance into Zimbabwe. The production ramp-up at Freda Rebecca continues to progress and our expansion to 50,000 ounces per annum is well advanced,” he said.
The mining concern also announced that the loan term was five years with an interest rate of 5 percent over US$ LIBOR (London Interbank Offered Rate).
“The drawdown of the second tranche of up to $6m is conditional on further conditions precedent being met. The facility is repayable in 10 equal installments over a five year period and attracts an interest rate of US$LIBOR plus 5%,” read the report.
The report read that 30,000 oz of gold per annum production rate was achieved and for the six month period from August 2010 production averaged 2,569 oz of gold per month.
“Phase 2 expansion to a production rate of 50,000 oz per annum is underway,” read the report.
The IDC is a self-financing, South African state-owned national development finance institution that provides finance to promote industrial and entrepreneurial development.
Its primary objectives are to contribute to balanced sustainable economic growth in Africa and to the economic empowerment of the South African population, thereby promoting the economic prosperity of all citizens of the African continent.