Rescue deal for African copper....

Friday, Apr 10 2009 by
  • Recent announcement by African Copper that its major shareholder would inject much-needed funding via a 4.4 million pounds share purchase,, lifting its stake to 70 percent, and an $8.5 million loan facility. It will also issue about 5.3 million new shares in swap deal to settle 16.1 million pounds of debt.
  • The Company has no income currently as its principal Mowana Mine in Botswana is on care and maintenance. Furthermore, copper prices are expected to remain weak in the near term and "the group is therefore dependent on the injection of funding by Natasa pursuant to the proposals to enable it to continue to trade".
  • Upon completion of the deal, African Copper's current board will step down and Natasa's nominees Chrisilios Kyriakou and Jonathan Reynolds would become chairman and CFO.

Will this be the start of happier times for African Copper or is it good money after bad?

 


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African Copper Plc (African Copper) is a holding company of a copper producing and mineral exploration and development group of companies. During the fiscal year ended March 31, 2012, the principal activity of African Copper is engaged in the exploration for, development and mining of, copper deposits in the Republic of Botswana. The Company’s main asset is the Mowana Mine, which consists of a 3,000 million ton per day copper processing facility and the copper producing Mowana openpit. The Company also owns a mining license at the high grade copper-silver Thakadu open-pit, lying about 70 kilometers from the Mowana processing infrastructure. It holds permits in exploration properties at the Matsitama Project, which is contiguous to the southern boundary of the Mowana Mine. The Company’s subsidiary Matsitama Minerals Pty Limited (Matsitama) holds the Matsitama Project, consisting of prospecting licenses contiguous with the Mowana Mine deposit. more »

Share Price (AIM)
0.625p
Change
0.0  0.0%
P/E (fwd)
n/a
Yield (fwd)
n/a
Mkt Cap (£m)
9.3



  Is African Copper fundamentally strong or weak? Find out More »


1 Post on this Thread show/hide all

MrT 28th May '09 1 of 1
1

Shares have been bouncing around but were up 22% yesterday! There's been an interesting battle over £ACU between Natasa (NSN.AX), controlled by Chris Kyriakou, the Australian mining dealmaker, and Zambia Copper Investments Ltd (ZCI.J). Shareholders rejected the takeover offer from Natasa and in came ZCI  which, unlike Natasa, runs its own Zambian copper mine. ZCI agreed a $22.5 million financing package for African Copper but then  Natasa demanded immediate repayment of the Messina bonds earlier this month, so ZCI has had to provide African Copper with an additional $25.4 million (it now own 82%) to stave off the threat of liquidation.

African Copper announced yesterday that  it believes it has satisfied virtually all the claims made against it by mining investment firm Natasa Mining Ltd and that it is looking to restart mining, so the liquidation has now receded, sending shares up 22%.

There may be some more twists and turns to the story but the future of African Copper now looks much more assured... which is good news given that copper prices are also recovering somewhat.

http://www.stockopedia.com/news/announcement/ACU/090526acu000497.htm

http://www.mmegi.bw/index.php?sid=4&aid=22&dir=2009/May/Monday25

http://business.timesonline.co.uk/tol/business/markets/article6297003.ece

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