ZCI to provide African Copper with extra funding

LONDON – Mining investment firm Zambia Copper Investments Ltd (ZCI) yesterday threw a US$25,4 million lifeline to African Copper Plc, allowing the copper miner to repay a bond and sending its shares soaring.

ZCI said it will provide African Copper, which is developing its first copper mine in Botswana, with an additional US$25,4 million of funds.
The amended package follows a revised financing offer to African Copper by ZCI rival Natasa Mining Ltd , which on Friday called for immediate repayment of the 150 million Botswana Pula bonds (US$21 million) issued by African Copper unit Messina.
Mining investment firm Natasa also said on Friday it had lodged a petition with the High Court of Botswana for the winding up of Messina and the appointment of a provisional liquidator.
Monday morning, shares in African Copper were up 53 per cent at 10,73 pence, valuing the group at around 16,9 million pounds (US$25,69 million), and making the exploration company the top gainer on London’s junior AIM market. The shares earlier rose as high as 12,75 pence.
On Friday its shares fell about 35 per cent after Natasa called for the bonds to be repaid.
Earlier this month, African Copper shareholders rejected a takeover offer from mining investment firm Natasa, which would have replaced the whole board of African Copper, leaving the way open for rival bidder Zambia Copper.
‘I am delighted that ZCI has so clearly evidenced its good intentions towards ACU (African Copper) with hard cash, demonstrating ACU is still a going concern,’ said African Copper’s Deputy Chairman Dave Jones yesterday.
African Copper put its Mowana mine on care and maintenance in January pending the completion of financing talks. – Nampa-Reuters