ZCI
ZAKK
ZCI - Further Cautionary Announcement
Zambia Copper Investments Limited
(Registered in Bermuda)
JSE code: ZCI
ISIN: BMG988431240
("ZCI" or "the company")
FURTHER CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcements released on SENS between 2
September 2005 and 26 September 2006, the board of directors of ZCI ("the
Board") wishes to inform shareholders that while agreement has now been
reached on the terms of engagement of the independent investment bank
regarding the valuation of the 28.4% of Konkola Copper Mines plc ("KCM")
shares held by ZCI through its wholly owned subsidiary, ZCI Holdings
S.A., a material dispute has arisen between ZCI and Vedanta Resources plc
("Vedanta") relating to the interpretation of the Vedanta Call Option
Deed. The Vedanta Call Option Deed gives Vedanta the right to purchase
the remaining 28.4% of KCM shares held by ZCI and in the event that
Vedanta is unwilling to pay the option exercise price, it shall not be
required to proceed with the associated purchase of ZCI"s KCM shares. The
appointment of the independent investment bank cannot be finalised and
the valuation process can therefore not progress until the dispute is
resolved. The company has issued a notice of arbitration to Vedanta.
The Board has, through its representatives, engaged extensively with
Vedanta in an attempt to resolve these differences and has been obliged
to refer the matter to arbitration as a last resort. The Board is
satisfied that the current proceedings are crucial to protect the
interests of ZCI and its shareholders and the directors will continue to
keep shareholders informed of developments in relation to the arbitration
process.
ZCI shareholders are advised to continue exercising caution when dealing
in ZCI"s shares until a further announcement is made.
Bermuda
20 October 2006
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 20/10/2006 04:41:05 PM Produced by the JSE SENS Department
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
