China Africa Resources in the dark as shares spike

Shares in China Africa Resources soared to their highest in over a year on Thursday before the company said it was unaware of a specific reason.

The Namibia-focused AIM tiddler, which hit an all-time low of 1.5p earlier in the month, surged from 3p to 7p on Thursday morning, levels not seen since spring last year.

Not long after midday, the company put out a statement noting the rise the share price and said it "advises the market that it knows of no specific reason for such significant movements".

China Africa, which is 65%-owned by the East China Mineral Exploration and Development Bureau (ECE) and 25% by AIM-listed Weatherly International, reversed into Weatherly in 2011 in order to fund the development of the Berg Aukas lead and zinc Mine near Grootfontein.

July's interim results revealed the board have "significantly" cut costs post year but that "some additional funding will be required" either through equity raisings or other financial arrangements in order to continue to meet working capital needs and development plans.

A pre-feasibility study of the Berg Aukas mine has apparently demonstrates its viability, with pre-tax net present values of between $49m and $51m.