Botswana – Cash strapped African Copper, the AIM/Botswana-listed copper producer, has signed an unsecured loan facility of USD$2 million from the Copperbelt Development Foundation (CDF).
This is African Copper’s second loan from the CDF, its ultimate controlling party and will provide it with additional short term working capital.
In May this year, African Copper announced that due to the early termination of its Thakadu mine, coupled with unforeseen shortfalls in production, it had found itself in a current working capital deficit. Subsequently, the CDF provided it with a US$1.5 million working capital loan.
To date, African Copper now has interest bearing loans (including accrued interest) with 84.19% holding company shareholder Zambia Copper Investments (ZCI) totalling $102.3 million, excluding the existing convertible loan of a further US$ 7.3 million.
The CDF loan facility has an interest rate of 9% per annum with the principal and accrued interest repayable in full on 31 March 2016.
ZCI and African Copper are still currently running processes to secure additional long-term funding.