Tuesday, May 21, 2024

African Copper secures another working capital from ZCI

African Copper, the Botswana Stock Exchange (BSE) quoted mining outfit, said it has secured an additional loan of USD2.0 million (about P15 million) from its controlling shareholder ZCI Limited (ZCI).
Marketwire reported that the purpose of the new loan is to provide the company with further working capital for its Mowana Mine facilities.

Acting Chief Executive of African Copper Plc, Jordan Soko, said, “The additional funds raised will provide the Company with the working capital to continue to improve production levels and highlights the continuing support of ZCI.”

The new USD2.0 million loan from ZCI is a secured loan facility with an interest rate of 9.0 per cent., repayable on 31 March 2013 (the “Facility”).

Interest will be accrued annually and interest payments deferred until 31 March 2013. The terms and conditions of the Facility are on substantially similar terms to the previous term loans from ZCI and bring ACU’s total interest-bearing loans (including accrued interest) from ZCI to USD64.9 million, excluding the existing convertible loan of a further USD8.4 million.

As ZCI owns 84.19 per cent. of ACU’s total issued ordinary share capital at the date of this announcement and is providing financing to the company, the Facility falls within the definition of a related party transaction under Rule 13 of the AIM Rules for companies.

The independent directors of the Company consider, having consulted with its nominated adviser Canaccord Genuity Limited, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

African Copper Plc is an AIM and Botswana listed copper producer and exploration company, currently focussed on Botswana.

The company’s flagship project is the copper producing open pit Mowana mine. ACU also owns the rights to the adjacent Thakadu-Makala deposit. Both deposits are situated on the highly prospective Matsitama belt, located close to Botswana’s second largest city, Francistown, in the north-eastern part of the country.


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