Article: zambia : Embattled Sentula in bid to raise R500m in rights issue.

Byline: sanjayV03

BELEAGUERED mining firm Sentula yesterday said it would raise R500m through a rights issue to pay crippling debts and provide much-needed working capital.

The group also yesterday disappointed shareholders with a trading update that showed earnings in the six months to September would plummet more than 80%, mainly due to reduced business volumes from the depressed mining sector.

Its grim trading update, through a stock exchange filing yesterday, hammered its shares, which slid in the morning and traded as much as 44c down, or 12%, at R3,25 the firm s biggest decline since March 5, according to Bloomberg calculations.

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