African Copper Plc
AIM : ACU

African Copper Plc

May 26, 2009 02:00 ET

ACU Payment to Bondholders and Natasa

LONDON, UNITED KINGDOM--(Marketwire - May 26, 2009) - African Copper PLC ('ACU') (AIM:ACU)(BOTSWANA:AFRICAN COPPER) -

Zambia Copper Investments Limited

(Registered in Bermuda)

(South African registration number 1970/000023/10)

JSE share code: ZCI & ISIN: BMG988431240

Euronext share code: BMG988431240

Zambia Copper Investments Limited ('ZCI') and African Copper Plc ('ACU')

ACU is pleased to announce that, today it unconditionally paid to the account of the trustee of the holders of bonds issued by ACU's wholly owned subsidiary Messina Copper (Botswana) (Proprietary) Limited ("Messina"), BWP 153,091,666.66 (approx. US$20.4 million at an exchange rate of US$1/BWP7.5), being the full principal amount owing under the bonds together with accrued but unpaid interest. The trustee for the bondholders had previously issued a notice calling for the redemption of bonds.

In addition, ACU today paid BWP 15,659,389.64 (approx. US$2.1million) to the account of Natasa Mining Limited's Botswana solicitors being the aggregate amounts, less certain deductions in relation to some disputed claims, owing to Natasa as a result of debts of Messina's trade creditors acquired by Natasa. ACU has also paid Natasa's solicitors US$1.505m being the amount required to repay Natasa's original bridge loan to ACU together with interest.

ACU believes that virtually all of the claims of Natasa against ACU and any of its subsidiaries that were identified in its petition for the provisional liquidation of Messina have now been satisfied in full. With remaining proceeds in hand from the previously announced financing package provided by Zambia Copper Investments Limited ACU considers that it would be inappropriate for any remaining disputes in relation to monies owed by ACU or its subsidiaries to be determined in insolvency proceedings and that the liquidation petition should be dismissed. Small creditors will still be repaid in full in cash from the proceeds of the previously announced financing package as their debts become due.

ACU and ZCI look forward to the completion of all outstanding matters, so that mining operations can recommence, cash can start to flow in following production and sale, and an exciting future for ACU can begin in full.



For more information, please contact:

ZCI John Kleynhans +35 24 025 05 427

iCapital (Financial
Adviser to ZCI) Jordan Soko/ Ken Muyangwa +260 211 256 657

Canaccord Adams
Limited (Financial Robert Finlay/ Mike Jones/
Adviser to ZCI) Andrew Chubb +44 207 050 6500

Bridge Capital
Advisors (Pty)
Limited
(Sponsors to ZCI) Pieter Veldtman/ Zayd Laher +27 (0) 11 268 6231

College Hill
(Public Relations
adviser to ZCI) Paddy Blewer (UK) +44 207 457 2020

Jacques de Bie (SA) +27 (0) 11 447 3030

African Copper PLC Chris Fredericks/ Brad Kipp +27 (11) 467 2360/
(416) 847 4866

Numis Securities John Harrison (Nominated Advisor)/
Limited James Black (Corporate Broker) +44 (9) 20 7260 1000


About ZCI

ZCI is a Johannesburg Stock Exchange ('JSE') and Euronext (Paris) listed, Bermuda incorporated, mining investment company. ZCI previously owned 65 per cent. (subsequently sold down to 28 per cent. in 2005) of the Konkola Copper Mine ('KCM') in Zambia but sold its residual stake in 2008 and is looking to invest in Africa-based mining companies.

About ACU

ACU is an international exploration and development company incorporated in England and Wales and tri-listed on the AIM market of the London Stock Exchange and the Botswana Stock Exchange. ACU is involved in the exploration and development of copper deposits in Botswana and is currently developing its first copper mine at the Mowana Mine and holds permits in exploration properties at the Matsitama Project. The Mowana Mine is located in the northeastern portion of Botswana and the Matsitama Project is contiguous to the southern boundary of the Mowana Mine.

Canaccord Adams Limited, which is authorised and regulated by the Financial Services Authority (the 'FSA'), is acting exclusively for ZCI and no-one else in relation to the transactions referred to in this announcement (the "Transactions") and will not be responsible to any person other than ZCI under the Financial Services and Markets Act 2000, the rules of the FSA or otherwise for providing the protections afforded to its clients or for any matter concerning the Transactions or for providing advice in relation to the Transactions or in relation to the contents of this announcement or any other transaction, arrangement or matter referred to herein. Canaccord Adams Limited can be contacted at Cardinal Place, 7th Floor, 80 Victoria Street, London SW1E 5JL.

Numis Securities Limited, which is authorised and regulated by the FSA, is acting exclusively for ACU and no-one else in relation to the Transactions and will not be responsible to any person other than ACU under the Financial Services and Markets Act 2000, the rules of the FSA or otherwise for providing the protections afforded to its clients or for any matter concerning the Transactions or for providing advice in relation to the Transactions or in relation to the contents of this announcement or any other transaction, arrangement or matter referred to herein. Numis Securities Limited can be contacted at The London Stock Exchange Building, 10 Paternoster Square London EC4M 7LT.

The release, publication or distribution of this announcement into certain jurisdictions other than the United Kingdom and Canada may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe any such restrictions. Any failure to comply with any such restrictions may constitute a violation of the securities laws or regulations of such jurisdictions.

This press release contains forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that may occur in the future are forward-looking information. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of ACU to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, ACU. Factors that could affect the Transactions (and ACU's future viability as a going concern) include the failure to defend a petition that has been made by Natasa Mining Limited for the provisional liquidation of Messina Copper (Botswana Proprietary) Limited. All forward-looking information speaks only as of the date hereof and, except as may be required by applicable securities laws, ACU disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although ACU believes that its expectations reflected in the forward-looking information, as well as the assumptions inherent therein, are reasonable, forward-looking information is not a guarantee of future performance and, accordingly, undue reliance should not be put on such information due to the inherent uncertainty therein.

Contact Information

  • African Copper PLC
    Brad Kipp
    Chief Financial Officer
    (416) 847-4866