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Noventa Ltd

  • BY: Andrew Hore |
  • POSTED: 23/07/2012 |

Tantalum mine developer Noventa Ltd wants to raise up to $35m but says it is unlikely to be able to raise money from a share issue.

Noventa is short of cash and it was not able to pay the dividend on its Plus-quoted convertible preference shares that was due on 10 July.

Noventa believes that the minimum it needs to develop its Mozambique operations and start activity in the Democratic Republic of Congo (DRC) is $21.2m after expenses.

The focus is on agreeing a secured loan from a syndicate of lenders including largest shareholder Richmond Partners Master Ltd. Noventa is negotiating an extension of its existing facility with Richmond for the time being. This currently lasts until the end of July and $7.7m has been drawn down. If the new loan cannot be agreed then Noventa may become insolvent.

Commissioning of the new process plant at the Marropino tantalum mine was delayed but it is up and running. Ramp up to production of 50,000lbs of contained tantalum should happen by the first quarter of 2013.

At 1.35p a share, down 0.3p, Noventa is valued at £1.62m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJuly2012_34.pdf

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