- 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?
Filed Under: Metals & Mining,