Published: 01 October 2013

BINDURA Nickel Corporation is reportedly close to sealing the $4,5 million bridging finance facility with unnamed domestic banks for the second phase of the restart of Trojan Mine.

Expectations had been that BNC would announce progress on the facility at the company's annual general meeting a fortnight ago but the nickel miner remained tight lipped on the issue.

However, in August this year BNC categorically stated that it "is in the process of seeking ($4,5 million) debt finance from Zimbabwean banks for the reduced working capital requirement.

The $4,5 million short-term bridging finance is central to the implementation of the company's revised mining plan and funding needs for the second phase of the restart of Trojan Mine.

BNC chief operations officer Mr Batirai Manhando could neither confirm nor deny the speculation saying while the issue was being pursued vigorously nothing had been finalized yet.

"We have not finalised yet, but something is brewing and at this stage we will not comment on that. Once we have signed we will come to the market with the story," Mr Manhando said.

BNC recently completed the internal review of the revised mine plan at its Trojan Mine to target the higher grade zones of the ore body, known as "massives", following the recent fall in the nickel price.

Prices of nickel plunged on international market due to increased supply as new projects came on stream while the use of pig iron as a substitute for nickel in steel production increased.
- bh24

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