The fact that Botswana is one of the most stable countries in southern Africa, a stark contrast to its chaotic neighbour Zimbabwe, is almost a bonus for suitors circling African Copper, the developer of Botswana's only pure copper mine. African Copper's main attraction iShares in the company have slumped from 70p since the company had to
shut the mine as the copper price dived, but such is its perceived
potential, once demand recovers, that the debt-laden African Copper has
two rival corporate groups bidding for control. Today, it is said,
Zambian Copper Investments, one of the bidders, will sweeten its offer
of $22.5 million (15.3 million) by raising the size of its upfront
bridging loan from $2.5 million to $10 million.
That should be enough cash to allow African Copper, down 0.03p to 2.1p,
to pay back a short-term loan received in March from Natasa Mining, the
Australian company that is the rival predator. Natasa's plan for a
rescue $17 million package, which would hand it 70 per cent of African
Copper, will be voted on by shareholders on May 7. Natasa has
threatened to wind up African Copper if its plan is rejected, to allow
it to recover its short-term loan.
The Times (UK)
Post published in: Economy