| Wed 13 May 2009, 8:44 | | ZCI - Zambia Copper Investments Limited - Amended terms in relation to |
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ZCI
ZAKK
ZCI - Zambia Copper Investments Limited - Amended terms in relation to
agreements entered into with African Copper plc
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")
Amended terms in relation to agreements entered into with African Copper plc
Further to the announcement dated 12 May 2009, ZCI are pleased to announce that
they have entered into amended versions of the binding agreements with African
Copper plc ("African Copper") in which ZCI has agreed to amend the terms of the
secured loan facility of US$10 million (the "Bridge Facility").
The Bridge Facility will now be available in two tranches as follows:
an initial tranche ("Tranche A") of up to US$7,000,000 of which:
* US$5 million has been drawn down by African Copper for the purpose of
repaying indebtedness owing to Natasa Mining Limited, for professional fees
and for other authorised expenditures;
* an amount of up to US$2 million to be drawn down and used to make payment
of the outstanding interest due on African Copper`s Pula bond (the "Bond").
US$1.75 million has been drawn down and used to make this payment; and
* will, from the date of any draw-down of monies under Tranche B, bear
interest of 12% per annum; and
a second tranche ("Tranche B") of an amount equal to US$10 million less the
amount of Tranche A (but being no less than US$3 million) that:
* will be available following the execution of a compromise agreement with
Read, Swatman & Voigt (Pty) Limited ("RSV") and security for the Bridge
Facility having become effective;
* will be available for the purpose of making an interim payment to RSV of
amounts owed to them and for other authorised expenditures; and
* will bear interest of 12% per annum.
Utilising the additional funds available to African Copper under Tranche A of
the Bridge Facility, African Copper has made a payment of 12,250,000 Pula
(approximately US$1.75 million at an exchange rate of US$1/7.0 Pula) to the
trustee of the Bonds for immediate payment to the bondholders of the outstanding
interest due on the Bonds.
Agreement entered into with Senet to acquire debt
ZCI has, on 12 May 2009, entered into a binding debt assignment agreement with
African Copper`s engineering procurement contractor Senet CC ("Senet") pursuant
to which Senet assigned its ZAR 17,002,545 (approximately US$2 million at an
exchange rate of US$1/ZAR8.44) outstanding debt (the "Senet Debt") to ZCI at a
price equal to 50% of the face value of the Senet Debt (the "debt acquisition").
As part of the debt acquisition, Senet will not be taking up its portion of the
offer to large trade creditors outlined in the announcement dated 16 April 2009.
In order to help secure African Copper`s future and to accelerate the
recommencement of mining operations at what is an important mine in Botswana,
ZCI has agreed with African Copper that it will not seek repayment of the Senet
Debt until at least the completion of the entire financing package.
Circular and renewal of cautionary
The financial effects of the offer of finance to African Copper and the debt
acquisition will be incorporated into a circular to shareholders setting out
full details of the proposed transactions and incorporating the notice of the
general meeting and form of proxy, the circular will be distributed to
shareholders in due course. Shareholders are advised to continue exercising
caution when dealing in the Company`s shares.
Bermuda
13 May 2009
Sponsor: Bridge Capital Advisors (Pty) Limited
Date: 13/05/2009 08:44:02 Produced by the JSE SENS Department.
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