Ongoing development of the Khoemacau Copper & Silver Project by Cupric Canyon Capital has received an additional funding worth $85 million, approximately P900 from Global Natural Resources Investments and Resources Capital Fund, Khoemacau Copper Mine announced on Thursday.
The company which is a subsidiary of Cupric Capital revealed that subsequent to its announcement of 25 February 2019, a US$85m equity component has been added to its Project Funding Package, bringing total available funding to US$650m , approximately P7 billion.
In February 2019, Cupric Canyon Capital, which at that time was the sole owner of Khoemacau Copper Mines announced the signing of a US$565 million project funding package that comprised of a US$275 million senior debt facility from Red Kite Mine Finance and US$212 million to US$265 million silver stream from RGLD Gold AG a wholly owned subsidiary of Royal Gold, Inc. and a US$25 million subordinated debt Facility from RG AG.
In a statement released on Thursday Khoemacau says within the additional $85 million boost is Global Natural Resource Investments (GNRI) investment of US$15 million further to its current equity investment, while Resource Capital Fund VII has subscribed for US$70 million of ordinary equity in the Khoemacau group of companies, giving it an effective 11.9% interest in Khoemacau.
The company said in the statement that all components of the Package closed simultaneously and first draws are already underway. This funding from RKMF and RG AG, combined with the US$85 million of new equity, provides the Company with total funding of US$650 million around P7 billion.
The Project Funding Package will be used for construction of Khoemacau 3.6 million tonnes per annum Starter Project, processing ore from a 91 million tonne resource, at a head grade of 2% copper and 21g/t silver. First copper concentrate production is expected in the first half of 2021, with annual production averaging 62,000 tonnes of copper and 1.9 million ounces of silver for over 20 years. The construction cost of the Starter Project is US$397 million over a two-year construction timeline.
The balance of the Project Funding Package covers working capital and corporate general and administrative costs, financing costs during construction, and repayment of the existing US$105m RKMF Bridge Loan. This Bridge Loan has funded all company activities, including exploration, detailed engineering and early construction activities, since late 2016. As well as providing cost overrun support, the Project Funding Package also funds the expansion Project studies, engineering and permitting work, and the exploration program for the next 2 years.
In June this year Khoemacau executed a 5-year, US$560 million, underground mining contract with Barminco, a subsidiary of international mining services group Ausdrill Limited. Following closing of the Project Funding Package, Khoemacau says Barminco is now proceeding with mobilization and readiness to commence execution of the Zone 5 underground mine in December 2019.
Early construction activities have been underway on the Khoemacau Project site since the beginning of 2019. There are now more than 700 people on site carrying out construction work including boxcuts for underground access, roads, a water pipeline and terraces for surface infrastructure. To date some 7.8% of the project capital cost, or US$31 million, has been spent on these activities, while some 57% of the capital costs have now been committed.
On Tuesday Global Engineering & Project Management Group Fluor Corporation announced that I has been awarded Engineering Procurement & Construction Management Contract for the Khoemacau Copper & Silver Project.Fluor’s scope entails upgrading the existing copper concentrator plant and new mine surface infrastructure.
Early July this year the President Mokgweetsi Masisi led the ground breaking and official opening of the Khoemacau Project. In his address President Masisi noted the signiwficant scale of the project and the associated investment, and that it bore testimony to the country’s attractiveness to foreign direct investment. President Masisi further recognized the importance of this project to the local economy and indeed Botswana.
Commenting on the additional funding Chief Executive Officer of Cupric Canyon Capital Johan Ferreira said the introduction of RCF brings a further industry leading investor into the financing group. “While the increase in the Project Funding Package provides the flexibility necessary to financially de-risk this development and also secures the funding to continue exploration and feasibility work on our exciting expansion options” he said.
Ferreira says the closing of the Project Funding Package, along with the execution of the underground mining contract with Barminco, allows Khoemacau now to move forward with all project development activities at full pace, and marks a significant milestone in this company’s development.
The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.
Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.
According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.
The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.
Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.
Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.
Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana. The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.
African heads of state and global CEOs at the World Economic Forum Annual Meeting backed the launch of the first of its kind report on how public-private partnerships can support the implementation of the African Continental Free Trade Area (AfCFTA).
AfCFTA: A New Era for Global Business and Investment in Africa outlines high-potential sectors, initiatives to support business and investment, operational tools to facilitate the AfCFTA, and illustrative examples from successful businesses in Africa to guide businesses in entering and expanding in this area.
The report aims to provide a pathway for global businesses and investors to understand the biggest trends, opportunities and strategies to successfully invest and achieve high returns in Africa, developing local, sub-regional and continental value chains and accelerating industrialization, all of which go hand in hand with the success of the AfCFTA.
The AfCFTA is the largest free trade area in the world, by area and number of participating countries. Once fully implemented, it will be the fifth-largest economy in the world, with the potential to have a combined GDP of more than $3.4 trillion. Conceived in 2018, it now has 54 national economies in Africa, could attract billions in foreign investment, and boost overseas exports by a third, double intra-continental trade, raise incomes by 8% and lift 50 million people out of poverty.
To ease the pain of transition to its new single market, Africa has learned from trade liberalization in North America and Europe. “Our wide range of partners and experience can help anticipate and mitigate potential disruptions in business and production dynamics,” said Børge Brende, President, and World Economic Forum. “The Forum’s initiatives will help to ease physical, capital and digital flows in Africa through stakeholder collaboration, private-public collaboration and information-sharing.”
Given the continent’s historically low foreign direct investment relative to other regions, the report highlights the sense of excitement as the AfCFTA lowers or removes barriers to trade and competitiveness. “The promising gains from an integrated African market should be a signal to investors around the world that the continent is ripe for business creation, integration and expansion,” said Chido Munyati, Head of Regional Agenda, Africa, World Economic Forum.
The report focuses on four key sectors that have a combined worth of $130 billion and represent high-potential opportunities for companies looking to invest in Africa: automotive; agriculture and agroprocessing; pharmaceuticals; and transport and logistics.
“Macro trends in the four key sectors and across Africa’s growth potential reveal tremendous opportunities for business expansion as population, income and connectivity are on the rise,” said Wamkele Mene, Secretary-General, AfCFTA Secretariat.
“These projections reveal an unprecedented opportunity for local and global businesses to invest in African countries and play a vital role in the development of crucial local and regional value chains on the continent,” said Landry Signé, Executive Director and Professor, Thunderbird School of Global Management and Co-Chair, World Economic Forum Regional Action Group for Africa.
The Forum is actively working towards implementing trade and investment tools through initiatives, such as Friends of the Africa Continental Free Trade Area, to align with the negotiation process of the AfCFTA. It identifies areas where public-private collaboration can help reduce barriers and facilitate investment from international firms.
About the World Economic Forum Annual Meeting 2023
The World Economic Forum Annual Meeting 2023 convenes the world’s foremost leaders under the theme, Cooperation in a Fragmented World. It calls on world leaders to address immediate economic, energy and food crises while laying the groundwork for a more sustainable, resilient world. For further information,