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LONDON,
UNITED KINGDOM--(Marketwire - May 18, 2009) - African Copper PLC
(AIM:ACU)(TSX:ACU)(BOTSWANA:AFRICAN COPPER) -
Zambia Copper Investments Limited
(Registered in Bermuda)
(South African registration number 1970/000023/10)
JSE share code: ZCI & ISIN: BMG988431240
Euronext share code: BMG988431240
Zambia Copper Investments Limited ('ZCI') and African Copper Plc
('ACU')
ZCI and ACU are pleased to announce that, on 18 May 2009, they amended
the previously announced financing package (the "Financing
Package") with the addition of a new loan facility (the
"Loan") pursuant to which ZCI has agreed to provide ACU and
its subsidiaries with an additional US$25.4 million of funds.
The Loan will enable ACU to pay in full (i) the bonds acquired by
Natasa Mining Limited ("Natasa"), with a face value of
BWP149.6 million (approx. US$ 21 million) and issued by ACU's wholly
owned subsidiary Messina Copper (Botswana) (Proprietary) Limited
("Messina") (the "Bonds") together with accrued but
unpaid interest and (ii) together with the other funds immediately
available under the Financing Package, to the extent required, pay any
other indebtedness of Messina. The Loan will bear interest at a rate of
12 per cent. per annum and be secured under the security previously
announced for the Financing Package.
As a result of the new funds being provided to ACU under the Loan, ZCI
and ACU have agreed to reduce the amount of the previously announced
US$10 million bridge loan by US$3 million because compromise agreements
have been reached with Messina's two largest trade creditors directly
by ZCI and therefore these funds are no longer required. Small
creditors will still be repaid in full in cash from the proceeds of the
Financing Package as their debts become due.
ACU and ZCI note the announcement by Natasa of a revised offer to ACU
from Natasa. As stated in ACU's announcement in relation to Natasa's
revised offer, the agreements entered into by ACU and its subsidiaries
with ZCI preclude ACU from entering into discussions with Natasa or any
other third party until the ZCI transaction has been implemented or has
failed to complete. Following the agreement of the revised Financing
Package and, in particular, the Loan, the directors of ACU and ZCI
remain confident that the ZCI Financing Package will be successfully
concluded, securing the future of the Mowana mine in Botswana.
Commenting on the revised Financing Package, ZCI Chairman Tom Kamwendo
said:
"We at ZCI are proud of our role as an African investment partner
and are working to ensure that there is good news in the Botswana
mining industry this year. We were saddened that the former bondholders
appear to have been persuaded to relinquish their ongoing stake in a
local industry by a party whose motive has been revealed subsequently
to be the liquidation of the local ACU company, Messina Copper, which
seeks to build its copper business in Botswana. The new loan
demonstrates our confidence that the constructive efforts of ZCI, ACU
and Messina Copper will prevail and that the companies will have a
strong future together. This loan brings us even closer to the
conclusion of ZCI's comprehensive financing package, which should
result in the timely re-establishment of the Mowana Mine."
Commenting on the revised Financing Package, ACU's deputy Chairman Dave
Jones said:
"I am delighted that ZCI has so clearly evidenced its good
intentions towards ACU with hard cash, demonstrating ACU is still a
going concern The directors of ACU continue to believe in the ability
of the transaction with ZCI to be implemented."
ZCI John Kleynhans +35 24 025 05 427 iCapital (Financial Adviser to ZCI) Jordan Soko/ Ken Muyangwa +260 211 256 657 Canaccord Adams Limited (Financial Robert Finlay/ MikeJones/ Adviser to ZCI) Andrew Chubb +44 207 050 6500 Bridge Capital Advisors (Pty) Limited (Sponsors to ZCI) Pieter Veldtman/ Zayd Laher +27 (0) 11 268 6231 College Hill (Public Relations adviser to ZCI) Paddy Blewer (UK) +44 207 457 2020 Jacques de Bie (SA) +27 (0) 11 447 3030 African Copper PLC Chris Fredericks/ Brad Kipp +27 (11) 467 2360/ (416) 847 4866 Numis Securities John Harrison (Nominated Advisor)/ Limited James Black (Corporate Broker) +44 (9) 20 7260 1000
About
ZCI
ZCI is a Johannesburg Stock Exchange ('JSE') and Euronext (Paris)
listed, Bermuda incorporated, mining investment company. ZCI previously
owned 65 per cent. (subsequently sold down to 28 per cent. in 2005) of
the Konkola Copper Mine ('KCM') in Zambia but sold its residual stake
in 2008 and is looking to invest in Africa-based mining companies.
About ACU
ACU is an international exploration and development company
incorporated in England and Wales and tri-listed on the AIM market of
the London Stock Exchange, the Toronto Stock Exchange and the Botswana
Stock Exchange. ACU is involved in the exploration and development of
copper deposits in Botswana and is currently developing its first
copper mine at the Mowana Mine and holds permits in exploration
properties at the Matsitama Project. The Mowana Mine is located in the
northeastern portion of Botswana and the Matsitama Project is
contiguous to the southern boundary of the Mowana Mine.
Canaccord Adams Limited, which is authorised and regulated by the
Financial Services Authority (the 'FSA'), is acting exclusively for ZCI
and no-one else in relation to the Financing Package and will not be
responsible to any person other than ZCI under the Financial Services
and Markets Act 2000, the rules of the FSA or otherwise for providing
the protections afforded to its clients or for any matter concerning
the Financing Package or for providing advice in relation to the
Financing Package or in relation to the contents of this announcement
or any other transaction, arrangement or matter referred to herein.
Canaccord Adams Limited can be contacted at Cardinal Place, 7th Floor,
80 Victoria Street, London SW1E 5JL.
Numis Securities Limited, which is authorised and regulated by the FSA,
is acting exclusively for ACU and no-one else in relation to the
Financing Package and will not be responsible to any person other than
ACU under the Financial Services and Markets Act 2000, the rules of the
FSA or otherwise for providing the protections afforded to its clients
or for any matter concerning the Financing Package or for providing
advice in relation to the Financing Package or in relation to the
contents of this announcement or any other transaction, arrangement or
matter referred to herein. Numis Securities Limited can be contacted at
The London Stock Exchange Building, 10 Paternoster Square London EC4M
7LT.
The release, publication or distribution of this announcement into
certain jurisdictions other than the United Kingdom and Canada may be
restricted by law and therefore persons in such jurisdictions into
which this announcement is released, published or distributed should
inform themselves about and observe any such restrictions. Any failure
to comply with any such restrictions may constitute a violation of the
securities laws or regulations of such jurisdictions.
Forward-Looking Information
This press release contains forward-looking information. All
statements, other than statements of historical fact, that address
activities, events or developments that may occur in the future
(including, without limitation, the anticipated dilutive effect of the
above transactions contemplated by the Financing Package, the
anticipated stakeholder value that may result from such transactions,
the proposed arrangements with ACU's creditors and bondholders and
other statements which are not historical facts) are forward-looking
information. Forward-looking information is subject to a number of
risks and uncertainties that may cause the actual results of ACU to
differ materially from those discussed in the forward-looking
information, and even if such actual results are realized or
substantially realized, there can be no assurance that they will have
the expected consequences to, or effects on, ACU. Factors that could
affect the transactions described above (and ACU's future viability as
a going concern) include the failure to complete the ZCI transactions
as result of the non-fulfilment of the conditions precedent. All
forward-looking information speaks only as of the date hereof and,
except as may be required by applicable securities laws, ACU disclaims
any intent or obligation to update any forward-looking information,
whether as a result of new information, future events or results or
otherwise. Although ACU believes that its expectations reflected in the
forward-looking information, as well as the assumptions inherent
therein, are reasonable, forward-looking information is not a guarantee
of future performance and, accordingly, undue reliance should not be
put on such information due to the inherent uncertainty therein.
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