Listed nickel producer, Bindura Nickel Company (BNC) has warned its shareholders over trading of company securities on the Zimbabwe Stock Exchange ahead of imminent takeover of controlling stake by a new investor who have just concluded the deal.
London based, Asa Resources sold its 74.73 percent stake in BNC to a local firm with interests in the mining and production of ferrous metals, non-ferrous metals and precious metals.
“Shareholders are referred to the Cautionary Statement published on 29 October 2019 advising that the ultimate holding company of BNC – Asa (currently under Administration) and a third party had entered into a Sale and Purchase Agreement (“SPA”) in relation to the 74.73% shareholding held in BNC by Asa and that the transaction involving the sale of these shares to the above-mentioned third party had been successfully concluded,” BNC 0board chair, Muchadeyi Masunda said in a statement Thursday morning.
The company said the transaction by the new controlling shareholder may have a material effect on the price of the Company’s securities.
“Accordingly, Shareholders are advised to continue exercising caution when dealing in the Company’s securities until a full announcement is made in due course,” further read the statement.
Earlier this week, BNC managing director, Batirai Manhando while engaging with stakeholders at BNC’S Trojan Mine was not privy to share much detail on the deal and the new shareholders, but identified them by the name, Sortic.
BNC is currently upgrading its Trojan mine with work on the smelter plant now 83 percent complete.
The company needs about US$ 7 -10 million to complete the plant.
Other projects include the finalization of Hunter’s Road Mine in Gweru, which has been in pre-development stage for more than a decade.