$350m capital needed to develop Botswana’s Khoemacau Mine
Cupric Canyon Capital, a private equity firm wants to approach the market to raise up to $350-million as start-up capital, to bring its Khoemacau (previously known as Hana Ghanzi Copper) copper and silver mine in Botswana into production! Cupric Canyon Africa is the parent company to Khoemacau.
The construction of the mine in the Kalahari Copper Belt is set to start in late 2016 with the first copper shipment to markets expected in 2018. According to Cupric Canyon Africa CEO, Sam Rasmussen the mine is expected to produce 50 000 t of copper and 1.5-million ounces of silver a year.
What about Financing of the project?
Cupric has appointed Citi to work on the financing and has already invested over $250 million.
Banking sources are believed to have said that a deal could take the form of a JV or a sale. Initially expected to cost about $200 million, the development of the new mine will be based on a revised feasibility study which has proved a larger copper and silver resource at the mine.
The mine is projected to have a productive life of at least 25 years and will use the processing plant at the nearby Boseto Mine, which it acquired after the liquidation of Discovery Metals.
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