African Copper Plc
TSX : ACU
AIM : ACU

African Copper Plc

May 18, 2006 11:38 ET

African Copper Plc: Completion of Public Offering of Subscription Receipts

LONDON, UNITED KINGDOM--(CCNMatthews - May 18, 2006) -

Not for Distribution to United States Newswire Services or for Dissemination in the United States

African Copper Plc ("African Copper" or the "Company") (TSX:ACU)(AIM:ACU)(BSE:African Copper) is pleased to announce that it has completed its previously announced public offering of 40,625,000 subscription receipts ("Subscription Receipts") at a price of CDN $1.60 per Subscription Receipt, for gross proceeds of CDN $65 million, to North
American investors through a syndicate of underwriters led by Dundee Securities Corporation and Raymond James Ltd. and including Paradigm Capital Inc. and BMO Nesbitt Burns Inc.

The Subscription Receipts will be exchanged for ordinary shares of the Company on the basis of one new ordinary share (a "New Ordinary Share") for each Subscription Receipt upon the New Ordinary Shares being admitting to trading on AIM ("Admission"). The issuance of the New Ordinary Shares is subject to approval by shareholders of the Company at an extraordinary general meeting to be held on 5 June 2006. It is expected that Admission will become effective and dealings will commence in the New Ordinary Shares on 6 June 2006. The TSX has conditionally approved the listing of the New Ordinary Shares and it is expected that the New Ordinary Shares will also commence trading on the TSX on 6 June 2006.

If Admission does not become effective, the holders of Subscription Receipts will have the subscription monies returned to them from funds held in escrow on their behalf and funds provided by the Company.

Net proceeds from the offering of the Subscription Receipts, together with net proceeds from the placing of 34,375,00 New Ordinary Shares in the United Kingdom by Numis Securities Limited at 77.5 p per New Ordinary Share, which is expected to close 6 June 2006, will be used to fund the development of the Company's mineral projects at Dukwe and in the Matsitama region of Botswana.

Contact Information

  • African Copper Plc
    David Jones / Joseph Hamilton
    +44 (0) 20 7321 3721
    www.africancopper.com
    or
    Numis Securities Limited
    John Harrison / Nick Westlake / Nick Stamp
    +44 (0) 20 7776 1590
    or
    Parkgreen Communications
    Justine Howarth / Ana Ribeiro
    +44 (0) 20 7493 3713