London, England — MININGREVIEW.COM — 17 April 2009 – Mining investment company Zambia Copper Investments Limited has confirmed that it has made a binding US$22.5 million (R207 billion) offer for international exploration and development company African Copper.
In a statement issued here, Zambia Copper – which until last year owned 65% of the Konkola Copper Mine in Zambia – said it was looking to invest in African-based mining companies.
The bid – which would see Zambia Copper take a 69.7% stake in African Copper – rivals a US$15 million (R138 million) offer made by mining investment firm Natasa Mining Limited in mid-March.
Shares in African Copper – which is tri-listed in London, Toronto and Botswana – jumped 10 percent to stand at 2.6 pence this morning on London’s junior AIM market.
The statement explained that Zambia Copper’s total financing package of around $22.5 million (R207 million) included a subscription for 677 million shares at 1 pence per share, and a four year secured convertible credit facility.
It also included a loan of US$2.5 million (R23 million) to meet African Copper’s immediate working capital needs, and to enable it to repay US$1.5 million (R14 million) in financing advanced by Natasa last month.
African Copper – which is involved in the exploration and development of copper deposits in Botswana – said it had received an unsolicited offer of finance from Zambia Copper, but did not intend to respond to it before its planned extraordinary general meeting on May 7.
Zambia Copper said its offer remained open for acceptance by African Copper at any time before 20 May 2009.