Business

ASA Resources exits BNC

Asa Resource Plc’

Tawanda Musarurwa

Controversial Chinese investors ASA Resources, have finally exited local nickel producer, Bindura Nickel Corporation (BNC), with local mining entity Sotic International taking up the majority 74,73 percent stake that was held by ASA and its partners, Mwana Africa and Zimnick.

The transaction was concluded on September 22, 2020.

And Sotic will hold the BNC shares under local entity, Kuvimba Mining House (Private) Limited.

“Mwana, Zimnick and Asa Gold hold a combined 74,73 percent of the entire issued share capital of the company. Consequently, the purchaser is now the indirect holder of such shares,” said BNC.

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“Based on the market value of the shares of the company on 22 September 2020, the purchase consideration for the shares transferred from Zimnick, Mwana and Asa Gold to Kuvimba Mining House (Private) Limited was $3,48 billion.”

The deal has been long in coming after the initial agreement was made in July last year.

This disposal marks the end of a series of attempts by ASA Resources to sell off the nickel producer, which it acquired in 2015.

ASA Resources’ assets in Zimbabwe initially included Bindura Nickel Corporation, Freda Rebecca Gold Mine as well as an agribusiness venture.

The ASA group also has copper and diamond operations in Congo and South Africa, respectively, as well as another nickel mine in Botswana and a base metal exploration in the Democratic Republic of Congo (DRC).

Throughout 2018, an unnamed third party was said to be a United Kingdom-based nickel producer with complementary interests in Southern Africa.

BNC’s problems worsened around 2017 after allegations of financial impropriety arose around the parent firm’s directors.

ASA’s then chairman and CEO Yat Hoi Ning, was sacked from ASA in April 2017 following allegations of fraud, of figures ranging between $4 million and

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