Transfer of Sotic acquired 74.7% BNC shares completed through the ZSE

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  • Share tranfer from ASA Resources to Sotic International completed today
  • ASA had been grappling with liquidity as well as corporate governance issues
  • Sotic is incorporated in Mauritius with other operations in Zim
  • Nickel prices have firmed over 6.5% in 2020

The transfer of shares from ASA Resources to Sotic International in BNC was completed today on the ZSE following the consummation of the deal late in 2019.

In November 2019, Mauritius based, Sotic International acquired a majority stake in listed miner Bindura Nickel Mine (BNC) to the tune of 926 775 700 shares from ASA Resources. ASA- formerly Mwana Africa, held a controlling a stake in BNC since 2003 when it acquired a 53% from the Anglo American.

As a backdrop, ASA has been grappling with liquidity as well as corporate governance issues. As such, the development comes as a positive one as it presents opportunities for the miner to have a recalibrated strategic focus.

ASA Resources was listed on the LSE’s AIM, before being suspended on 27 July 2017 at the request of the company following a delay in fixing a deep cashflow crisis. In 2018, at least 10 companies owned by ASA Resource Group (Asa) pleaded insolvency, accusing Chinese executives of breaching exchange control regulations, and these included BNC and a gold mining company, Freda Rebecca.

Sotic International is linked to businessman Kuda Tagwireyi, who  holds interests in Africa Chrome Fields and has been involved in bids for ferrochrome producer Zimbabwe Alloys.

Landela Mining Venture, another subsidiary of Sotic International, has recently emerged as the local joint venture partner in Great Dyke Investment, the Russia-Zimbabwe platinum project being developed near Darwendale.  

Listed in 1956, BNC is the largest nickel producer in Zimbabwe having averaged 6 550 metric tonnes of the metal over the past five years. The firm owns four key assets: the Trojan Nickel Mine, Hunters Road Mine, Shangani Mine and the Bindura Smelter & Refinery.

As the electric vehicle (EV) industry continues to boom, the future of nickel looks bright in the coming years as it is a vital component in electronic batteries. Tesla Chief Executive Elon Musk is on record for having said “Nickel is the new gold.”

Nickel prices have firmed over 6.5% in 2020 closing at US$14 692/tonne on global markets on Monday, having peaked at US$15 414/tonne this August.

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