LONDON -- (Marketwire) -- 04/28/09 --
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")
ZCI is pleased to announce an improved binding financing proposal for ACU and to clarify misleading remarks concerning ZCI's proposal made by Natasa Mining Ltd ("Natasa") in its press release dated 21 April 2009.
ZCI's improved proposal significantly increases the bridge loan facility offered by it from $2.5 million to $10 million so that ACU can:
- satisfy all repayment obligations to Natasa in full, removing the ability of Natasa to force ACU into liquidation;
- pay ACU's bondholders and key trade creditors 50% of the total amounts payable to them under the ZCI terms in advance of the full implementation of ZCI's proposal; and
- protect ACU shareholders' investment in Botswana.
As an indication of the seriousness of its intent, ZCI has transferred the full $10 million amount of the bridge loan facility to its solicitors in London, McCarthy Tétrault, to be held in trust at National Westminster Bank plc, Fleet Street, London branch for the purposes of the implementation of ZCI's proposal.
The full $22.5m offer from ZCI will satisfy bondholders and creditors and give shareholders in ACU the chance of significant upside in future operations. Shareholders, bondholders and creditors should note that Natasa's agreements with bondholders and creditors are conditional on ACU's shareholders voting in favour of certain resolutions proposed for ACU's 7 May EGM. Shareholders are accordingly urged to vote against the resolutions at the EGM enabling ACU to proceed with ZCI's offer.
Commenting on ZCI's proposals, Tom Kamwendo, Chairman, said:
"This new offer does three things: firstly it should satisfy all external stakeholders - shareholders, creditors and the wider Botswanan mining industry that we are committed to taking ACU towards a strong future as a listed, successful copper miner;
Secondly, it demonstrates that our promise of finance is real - we have put transparent funds in place that creditors can and will be paid according to the transaction timetable;
Finally, we have blown Natasa's offer and reservations out of the water.
This package is quite clearly in advance of anything that they have come up with for creditors, shareholders and Botswana itself.
Under these circumstances, ACU shareholders should vote against Natasa at the EGM to enable themselves and other stakeholders to benefit from ZCI's superior proposal."
Should ACU shareholders or other ACU stakeholders require any clarification of the terms of ZCI's offer or have other feedback relating to the offer they can contact ZCI at firstname.lastname@example.org