[2008-06-16]  African Copper lists multi-million Pula note
Messina Copper (trading as African Copper) yesterday listed a P150 million note (ACU001) on the Botswana Stock Exchange (BSE), under its recently approved P200 Million Note Programme.

In a statement posted on the BSE website, ACU001 is an unsecured fixed interest note at 14 percent per annum paid semi-annually on April 2 and October 2. Its maturity date is April 2, 2015.

The company announced last month that based on discussions with several Botswana institutions, it was considering offering additional notes with similar terms to the Botswana Bond as an alternative to the working capital facility that requires the company to commit to restrictive covenants and hedging requirements.

African Copper, which is tri-listed on the AIM, TSX and the BSE, said in its financial statement for the three-month period ended March 31, 2008 that production at its 100 percent owned Mowana Mine near Dukwi is scheduled for production in the second quarter of this year.It said its strategy is to grow as a base metal mining company and to provide above average returns to shareholders.

"To provide the company with operational flexibility, management has been considering the establishment of a revolving working capital and hedging facility for Mowana Mine," the statement said.On April 4, African Copper completed P150 million notes from local Botswana institutions (the Botswana Bond). The Botswana Bond is denominated in Pula and is an unsecured fixed rate note that bears interest at 14 percent annually and has a bullet maturity in seven years.

On February 8 this year, the company also raised approximately 5 million Pounds Sterling in additional equity as part of finalisation of a comprehensive off-take agreement for Mowana Mine concentrates.

The company plans to complete development of open pit mining operations at Mowana Mine with the addition of a DMS plant to the processing plant,which is planned to be operational in 2010.

The company also plans to further evaluate prospects of developing the underground portion of the mine at Mowana,while at the same time continuing with its Matsitama exploration project.
Source: © MMEGI 2002 - 2008