Zambia Copper Investments Limited
(Registered in Bermuda)
(South African registration number 1970/000023/10)
JSE share code: ZCI & ISIN: BMG988431240
Euronext share code: BMG988431240
("ZCI" or "the Company")
ZCI is pleased to announce an improved binding financing proposal for ACU
and to clarify misleading remarks concerning ZCI's proposal made by Natasa
Mining Ltd ("Natasa") in its press release dated 21 April 2009.
ZCI's improved proposal significantly increases the bridge loan facility
offered by it from $2.5 million to $10 million so that ACU can:
- satisfy all repayment obligations to Natasa in full, removing the ability
of Natasa to force ACU into liquidation;
- pay ACU's bondholders and key trade creditors 50% of the total amounts
payable to them under the ZCI terms in advance of the full implementation
of ZCI's proposal; and
- protect ACU shareholders' investment in Botswana.
As an indication of the seriousness of its intent, ZCI has transferred the
full $10 million amount of the bridge loan facility to its solicitors in
London, McCarthy Tétrault, to be held in trust at National Westminster Bank
plc, Fleet Street, London branch for the purposes of the implementation of
ZCI's proposal.
The full $22.5m offer from ZCI will satisfy bondholders and creditors and
give shareholders in ACU the chance of significant upside in future
operations. Shareholders, bondholders and creditors should note that
Natasa's agreements with bondholders and creditors are conditional on ACU's
shareholders voting in favour of certain resolutions proposed for ACU's 7
May EGM. Shareholders are accordingly urged to vote against the
resolutions at the EGM enabling ACU to proceed with ZCI's offer.
Commenting on ZCI's proposals, Tom Kamwendo, Chairman, said:
"This new offer does three things: firstly it should satisfy all external
stakeholders - shareholders, creditors and the wider Botswanan mining
industry that we are committed to taking ACU towards a strong future as a
listed, successful copper miner;
Secondly, it demonstrates that our promise of finance is real - we have put
transparent funds in place that creditors can and will be paid according to
the transaction timetable;
Finally, we have blown Natasa's offer and reservations out of the water.
This package is quite clearly in advance of anything that they have come
up with for creditors, shareholders and Botswana itself.
Under these circumstances, ACU shareholders should vote against Natasa at
the EGM to enable themselves and other stakeholders to benefit from ZCI's
superior proposal."
Should ACU shareholders or other ACU stakeholders require any clarification
of the terms of ZCI's offer or have other feedback relating to the
offer they can contact ZCI at zci@email.lu or its representatives at the
contact details set out below.
Click on, or paste the following link into your web browser, to view the
full announcement.
http://www.rns-pdf.londonstockexchange.com/rns/2531R_1-2009-4-27.pdf
Contact Information: For more information, please contact: ZCI Tom Kamwendo (Chairman) +260 977 752 371 Bridge Capital Advisors (Pty) Limited (Sponsors) Pieter Veldtman/ Zayd Laher +27 (0) 11 268 6231 Canaccord Adams Limited (Financial Adviser to ZCI) Robert Finlay/ Mike Jones/ Andrew Chubb +44 207 050 6500 iCapital (Financial Adviser to ZCI) Jordan Soko +260 966 751 993 College Hill (Public Relations adviser to ZCI) Paddy Blewer (UK) +44 207 457 2020 Jacques de Bie (SA) +27 (0) 11 447 3030