Natasa Mining Limited, the Australian mining outfit, withdrew its case against African Copper Plc on Wednesday.
The case was aimed at forcing the former into liquidation.
The┬á decision ┬áfollows┬á African Copper’s (ACU’s) move┬á to “unconditionally“ settle all of Natasa’s outstanding debts┬á last week by African CopperÔÇöthe owner of┬á Mowana Mine that is gearing up to re-open┬á in the next three months.
African Copper, a┬á company that was be-devilled by┬á cash problems that forced it to suspend┬á mining operations for the last five months, got some cash injection from Zambia Copper Investments (ZCI).
ZCI was voted the preferred bidder for ZCI after┬áACU┬á quashed Natasa’s hopes of winning a bid that would have entitled it to have a stake in Mowana mine.
In statement issued out┬á early last week, ┬áAfrican Copper said it had “unconditionally paid┬á to the┬á account of trustee of the holders of┬á bonds issued by ACU (African Copper) wholly owned subsidiary Missena Copper Botswana P 153 million or US $ 20.4 million being the full principal amount owing┬á under the bonds ┬átogether with accrued but unpaid interest”.
“In addition, ACU paid P 15.7 million to the account of Natasa solicitors being aggregate amount, less certain deductions in relation to some disputed claims, owing to Natasa as a result┬á of debts of Messina’s trade┬á creditors acquired by Natasa,” the company said.
Natasa had demanded African Copper to pay its debt or face liquidation after it lost the bid ┬áand also rallied bondholder to ask African Copper to redeem their bonds in full.
African Copper is planning to start mining operations ┬áin the next three months after it got an injection of US $10 million┬á ┬áfrom ┬áits Zambia Copper Investments (ZCI), as part of a move to help the country’s budding miner to get off its feet.
African Copper┬á sold 6,766,705 shares worth┬á about US $ 9.9 million last week and ┬áthat gave┬á ZCI an interest in the organization of┬á 82 percent.
The money was in addition to the┬áextra US $ 25.4 million which it injected┬áfrom the US $22 million loan facility. That move is expected to┬ámove back the legal threats posed by Natasa Mining Limited ÔÇöthe Australian company┬á whose bid was rejected ÔÇô is suing the miner for not accepting its bid.
“We are currently working on a new mining plan and the plan is to re-start operations within┬áthree months,” African Copper’s Chief Executive Officer, Chris ┬áFedericks said.
┬áThe company also de-listed from the Toronto Stock Exchange saying that the London market would be able to serve the rest of Europe┬áand northern America.
African Copper, which shut a mine in January after running out of cash, fell the most in London trading since going public in 2004 after the holder of a bond issue demanded immediate repayment. ┬á
African Copper, a London AIM ┬áand Botswana listed company, is operating Mowana Mine which ┬áis about 100 kilometers west of┬á Botswana’s second largest city, Francistown.