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LONDON, UNITED KINGDOM--(Marketwire -
May 15, 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')
Natasa Mining Limited ("Natasa") announcement
ACU and ZCI note today's announcement issued by Natasa in respect of
its acquisition of (i) bonds with a face value of BWP149.6 million (US$
21 million) issued by ACU's wholly owned subsidiary Messina Copper
(Botswana) (Proprietary) Limited ("Messina") (the
"Bonds") and (ii) other indebtedness of Messina. The
announcement also outlines Natasa's lodging of a petition with the High
Court of Botwsana to seek an order for the provisional liquidation of
Messina.
ACU confirms that Messina has been served with a copy of the petition
and is currently reviewing its contents with ZCI. At this point, ACU
intends to dispute the validity of certain claims made in the petition.
In particular, both the quantum of the security interest which Natasa
has over ACU's residential estate as well as the extent to which that
interest encumbers the movable assets of Messina. ACU is confident that
the petition can be defeated.
At no time since acquiring the bonds and other indebtedness of ACU and
its subsidiaries has Natasa made any meaningful attempts to engage ACU
in a dialogue concerning the indebtedness and it therefore appears that
the indebtedness was acquired for the sole purpose of forcing a
liquidation of Messina. In addition, following notification of the
repayment date by Natassa on 7 May 2009 to pay the outstanding US$1.5
million bridge loan and US$2.3 million of trade debt acquired by
Natassa, Natasa has frustrated ACU attemps to pay these amounts in
full.
ACU and ZCI believe in the future of the Mowana mine and will consider
their options and update the market in due course.
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 claim that Natasa's petition can be
defeated 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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