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Nickel Corporation despite an earlier announcement stating otherwise.
In the latest statement, Mwana Africa said equity funding was just but one of the options being considered.
“The company can confirm that no equity fund-raising is being undertaken at this time.
“Mwana continues to consider a number of options to finance the restart of production at BNC, including debt, and will update shareholders in due course,” read the statement.
This comes on the back of an earlier statement by the company stating that it was considering equity funding for financing of BNC.
“The company can confirm that it is considering an equity fund-raising as one of the options to finance the restart of production at Bindura Nickel Corporation’s Trojan mine.
“The pricing of an equity fund-raising, if any, has yet to be determined,” Mwana had said earlier.
The smelter and refinery complex at Bindura as well as the feeder Shangani and Trojan nickel mines were put on care and maintenance in 2008 following a sharp decline in global nickel prices and production complexities.
BNC’s assets remain on a care and maintenance programme.
In March last year, Mwana had said it was looking to restart some operations at its Bindura Nickel’s Trojan Mine in six to seven months.
However, the restart of Bindura, which is estimated at a value of US$26 million, has been constrained by a lack of working capital.
Loan finance of an estimated US$10 million, from the Industrial Development Corporation of South Africa, remains undrawn due to complications in the completion of final conditions to allow drawdown.
The planned restart of production at BNC’s Trojan Mine, which requires funding, follows the completion of a Competent Person’s Report and the conclusion of an off-take agreement with Glencore International AG whereby Glencore will purchase all the concentrate produced by BNC, as previously announced.
In terms of the Glencore deal, BNC will sell all nickel concentrate produced at Trojan to Glencore until the Bindura smelter and refinery are re-tarted. Glencore will pay BNC an LME-linked price on agreed terms for final contained nickel.
BNC has since said it expects to restart mining at Trojan with an initial rate of 10 000tpm ramping up to 70 000tpm over 12 months, and eventually 870 000 tonnes of ore once a steady state is achieved.
Meanwhile, production at the Freda Rebecca Gold Mine has been progressing well, with average monthly production achieved for the three- and six-month periods to March 31 2011 standing at 2 858oz and 2 720oz respectively.
In the financial year to date, Freda Rebecca produced 27 211oz of gold, with 3 573 oz of gold produced last month.
Mwana Africa says the second milling circuit, which is part of the Freda Rebecca phase two expansion programme will be commissioned in May.
BNC is majority owned by Mwana Africa Holdings, which is headed by chief executive officer Mr Kalaa Mpinga.