Base and precious metals company Cradle Arc has applied for the provisional liquidation of its 60%-owned Leboam Holding subsidiary, which owns the now suspended Mowana copper mine, in Botswana, while talks on alternative funding arrangements continue.
The mine is facing significant working capital constraints after Mowana and Fujax Minerals and Energy could not agree on collateral for the drawdown of its financing facility. It has a conditional $4-million working capital facility from Fujax, from which it had drawn down $1-million.