The company is listed in London and Johannesburg, and has copper, gold and nickel projects in Zambia, Tanzania and Mozambique. Dutwa is the company’s main undertaking in Africa.
Park said based on a comprehensive strategic review of the company’s assets and activities, he believed that Dutwa would deliver the best return to shareholders.
A scoping study completed recently made a strong investment case for the Dutwa project, he said. “Results of metallurgical test work announced in February and the scoping study completed in June show that Dutwa is likely to be a highly profitable operation, thanks to its uniquely straightforward metallurgy.”
The farm-in agreement over the adjacent Ngasamo deposit, signed in April, should add at least 50% to the project resource. As a result of these developments, the company was able to raise £3,37m of new capital in an offer and placing early last month, he said.
Park said together with the company’s cash resources — about £1,5m — the proceeds of the placing and open offer would be used largely to start on work leading to a feasibility study on Dutwa and for general working capital.
“The commitment of our shareholders to the company in supporting the financing is a clear endorsement of the board’s strategy to concentrate its effort on the Dutwa nickel project.”
Park said with nickel prices rising to about $17500, from $11000 in April, combined with a feasibility study on Dutwa, the company was on track to deliver a much better 2009 result than he had cautiously promised shareholders in April. It reported a net loss in earnings of £613,97m in the six months to June, a 24% improvement from £808,65m in the previous comparable period.
