After securing a valuable asset in Mowana Mine outside Francistown, Zambia Copper Investments (ZCI) is poised to re-list on the JSE next week, subject to shareholder approval.
In a circular to ordinary shareholders, the company also wants to propose a name change to ZCI Limited.
The JSE listing requirements demanded that the company should have assets to remain listed, but by then it had disposed of its 28.4% share in Konkola to Vedanta for US$213.15 million.
“Pursuant to the disposal, the company was reclassified as a cash shell with effect from 10 April 2008 and in terms of the provisions of the Listings Requirements, permitted a six-month period to enter into an agreement to acquire a viable asset (on or before 10 October 2008), failing which the JSE would suspend the shares from trading for a period of three months following the said lapse,” the company said in the circular.
ZCI will tomorrow (Monday) seek shareholder approval that will clear the grass for re-listing on January 15.
Its shares had been suspended early last year as it sought to find new assets when it landed a lucrative investment on African Copper (82%), which owns Mowana mine.
It beat other suitor–Natasa Mining– in a fierce bidding war.
Meanwhile, African Copper said late last year that it has been advised that an Independent Competent Persons Report (CPR) on Mowana Mine and Thakadu Project in Botswana has been prepared by Read Swatman & Voigt (RSV) on behalf of ZCI.
The CPR was produced in accordance with Section 12 of the JSE Listing Requirements in connection with the preparation of a circular to ordinary shareholders of ZCI dated 17 December 2009 for a meeting of ZCI’s shareholders.
The meeting is being held to, among other things, approve and ratify the subscription by ZCI for 676,570,500 new ordinary shares in the capital of ACU (representing approximately 82% of the outstanding ordinary shares of ACU) which completed on 21 May 2009, the US$31,129,100 term loan facility granted by ZCI to ACU’s wholly-owned subsidiary Messina Copper (Botswana) (Proprietary) Limited pursuant to a term loan facility agreement dated 18 June 2009, and the assignment to ZCI of certain outstanding debt of ACU by certain creditors of ACU, all as previously announced by ACU.
After recapitalisation from ZCI, African Copper is fast tracking production at Mowana mine at time when prices for metals are picking up.
The company executives told Sunday Standard last year it was planning to build a township along the Francistown-Maun highway as it moved to production.
According to the plan, African Copper would initially concentrate on the extraction of ore in the southern tip of the pit, which has an estimated 1.5 percent of copper against the pit average of 0.71 percent.
According to the current estimates, the open pit of the mine, which is 20 percent of the ore, is expected to be mined in a space of seven years while the remaining part could be between 20ÔÇôto-30 years. Further, there is another proven reserve some 2 kilometers north of the pit while some investigations are ongoing relating to the southern side of the pit, which is also thought to be having some copper.