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June 20, 2007
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African Copper Announces Private Placement with Botswana Institutional
Investors to Raise up to 92,045,492 Botswana Pula
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LONDON, UNITED KINGDOM--(CCNMatthews - June 20, 2007) - African Copper Plc ("African Copper" or the "Company") (AIM:ACU)(TSX:ACU)(BSE:AFRICAN COPPER) announces that it proposes to raise up to 92,045,492 Botswana Pula (approximately Pounds Sterling 7.5 million or C$15.9 million) by way of a private placement of up to 8,367,772 ordinary shares at a price of 11 Botswana Pula (approximately Pounds Sterling 0.89 and C$1.89) per ordinary share (the "Private Placement").
The Company has received indications from potential subscribers that, if fulfilled, will satisfy the entire Private Placement.
The Company has agreed to pay a capital raising fee in cash to Capital Corporate Finance (Pty) Ltd. (Gaborone, Botswana) equal to 5% (exclusive of taxes) of the proceeds raised pursuant to the Private Placement.
The Private Placement is scheduled to close on or about 26 June 2007 and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and admission of the placing shares to trading on the AIM market of the London Stock Exchange.
Mr. Joseph Hamilton, Chief Executive Officer of African Copper commented:
"The Botswana Stock Exchange has been very successful in facilitating the investment of domestic and international savings into financial economic growth and diversification within Botswana. This share placement from managers of Botswana pension assets strengthens African Copper's ties with the local community and further promotes investment from the Botswana private sector. African Copper is committed to promoting expansion and growth of the Botswana economy as it develops its first mine at the Dukwe Mining Project".
African Copper, PLC
African Copper is a tri-listed (AIM, TSX, Botswana Stock Exchange) international exploration and development company. African Copper is developing its first copper mine at the Dukwe Mining Project scheduled to commence production in the first quarter of 2008. The flotation concentrator at Dukwe has been designed for a 3,000 tonne-per-day throughput producing approximately 44 million pounds of copper in concentrate annually at full production. Initial production is expected to be from open pit, followed by underground mining of sulphides.
The Company's other interests are the Matsitama Exploration Project concessions adjacent to the Dukwe Mining Project, which contains ten high priority drill-ready targets and 35 lower priority targets. For more information on African Copper, please visit www.africancopper.com or email info@africancoppper.com.
This press release contains or refers to forward-looking information, including statements related to future production, exploration and mine development plans, timing of the development of the Company's projects in Botswana, exploration results, metallurgical test results, and other statements which are not historical facts. When used in this press release, words such as "schedule", "could", "plan", "estimate", "expect", "believe", "intend", "may" and similar expressions are forward-looking statements. Although the Company believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include risks related to failure to convert estimated mineral resources to reserves, the grade and recovery of ore which is mined varying from estimates, future prices of copper, capital and operating costs varying significantly from estimates, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, delays in the development of projects, conclusions of economic evaluations, political risks arising from operating in Africa, changes in project parameters as plans continue to be refined, and other risks involved in the mineral exploration and development industry. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could case actual results to differ materially from expected results. Accordingly, readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or to revise them to reflect new events or circumstances, except as required by law.
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CONTACT INFORMATION:
African Copper Plc
Naomi Nemeth
Vice President, Investor Relations
Email: Info@africancopper.com
Website: www.africancopper.com
or
Numis Securities Limited (NOMAD)
John Harrison / James Black
+44 (0) 20 7260 1000
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INDUSTRY: Manufacturing and Production - Mining and Metals
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