| Mon 18 May 2009, 9:20 | | ZCI - Zambia Copper Investments - Amended agreement between ZCI and African |
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ZCI
ZAKK
ZCI - Zambia Copper Investments - Amended agreement between ZCI and African
Copper Plc (`ACU`) and renewal of cautionary announcement
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 agreement between ZCI and African Copper Plc (`ACU`) and renewal of
cautionary announcement
Futher to the terms announcement dated 16 April 2009 and subsequent
announcements dated 28 April 2009, 12 May 2009 and 13 May 2009, ZCI and ACU are
pleased to announce that, on 18 May 2009, they amended the previously announced
financing package (the "Financing Package") with the addition of a new loan
facility (the "Loan") pursuant to which ZCI has agreed to provide ACU and its
subsidiaries with an additional US$25.4 million of funds.
Details of the amendments to the agreement
The Loan will enable ACU to pay in full (i) the bonds acquired by Natasa Mining
Limited ("Natasa"), with a face value of BWP149.6 million (approx. US$ 21
million) and issued by ACU`s wholly owned subsidiary Messina Copper (Botswana)
(Proprietary) Limited ("Messina") (the "Bonds") together with accrued but unpaid
interest and (ii) together with the other funds immediately available under the
Financing Package, to the extent required, pay any other indebtedness of
Messina. The Loan will bear interest at a rate of 12 per cent. per annum and be
secured under the security previously announced for the Financing Package.
As a result of the new funds being provided to ACU under the Loan, ZCI and ACU
have agreed to reduce the amount of the previously announced US$10 million
bridge loan by US$3 million because compromise agreements have been reached with
Messina`s two largest trade creditors directly by ZCI and therefore these funds
are no longer required. Small creditors will still be repaid in full in cash
from the proceeds of the Financing Package as their debts become due.
ACU and ZCI note the announcement by Natasa of a revised offer to ACU from
Natasa. As stated in ACU`s announcement in relation to Natasa`s revised offer,
the agreements entered into by ACU and its subsidiaries with ZCI preclude ACU
from entering into discussions with Natasa or any other third party until the
ZCI transaction has been implemented or has failed to complete. Following the
agreement of the revised Financing Package and, in particular, the Loan, the
directors of ACU and ZCI remain confident that the ZCI Financing Package will be
successfully concluded, securing the future of the Mowana mine in Botswana.
Circular and renewal of cautionary
The financial effects of the offer of finance to ACU 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
18 May 2009
Sponsor: Bridge Capital Advisors (Pty) Limited
Date: 18/05/2009 09:20:02 Produced by the JSE SENS Department.
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