Cradle Arc (LSE:CRA)
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TIDMCRA

RNS Number : 6264E

Cradle Arc PLC

19 October 2018

Cradle Arc plc / EPIC: CRA.L / Market: AIM / Sector: Mining

19 October 2018

Cradle Arc plc

("Cradle Arc" or the "Company")

US$2m Loan Facility Completed

Cradle Arc (AIM: CRA), the African focused base and precious metals exploration and production company, is pleased to announce, further to its announcement of 8 October 2018, the completion of the restructuring of certain obligations by Leboam Holdings (Pty) Limited ("Leboam") to ZCI Limited and Messina Copper Botswana (PTY) Limited - In Liquidation, thereby enabling the successful conclusion of the Debt Sale Agreement (as referred to therein) between PenMin Botswana Proprietary Limited ("PenMin") and Fujax Minerals and Energy Limited. Accordingly, the loan facility of US$2 million from PenMin, Cradle Arc's largest shareholder, has now been finalised and the funds made available to Leboam.

The loan facility provides Cradle Arc's operating company, Leboam, with sufficient funding to establish an enhanced inventory of key spare parts and improve and rehabilitate the current processing facilities at Mowana and thereby address the intermittent breakdowns and interruptions that were the key reason for the Company's inability to meet its production targets during Q3 2018.

**ENDS**

For further information on the Company, please visit www.cradlearc.com or contact:

 
 Cradle Arc plc                     Tel: +44 (0)20 7637 5216 
  Kevin van Wouw 
  Mark Jones 
 
   Strand Hanson Limited              Tel: +44 (0)20 7409 3494 
   James Spinney 
   Matthew Chandler 
   James Dance 
 
   SP Angel Corporate Finance         Tel: +44 (0)20 3470 0470 
   LLP 
   Ewan Leggat 
   John Meyer 
 Tavistock Communications Limited   Tel: +44 (0)20 7920 3150 
  Charles Vivian 
  Gareth Tredway 
 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

About Cradle Arc

AIM-quoted Cradle Arc plc is the 60 per cent. owner of the Mowana copper mine in Botswana, an operational open pit mine and processing facility located in the north-east of the country, approximately 120 km northwest of Francistown.

The Company has an independent open pit ore reserve estimate (Proved and Probable JORC 2012) of 31.8 Mt at 1.17% Cu for 370,800 tonnes contained copper, based on a Dense Media Separation (DMS) mine plan.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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October 19, 2018 06:17 ET (10:17 GMT)