JOHANNESBURG (miningweekly.com) – JSE-listed Zambia Copper Mining (ZCI) has entered into a new term loan facility agreement with African Copper (ACU), to refinance the existing bridging loan facilities it made to ACU subsidiary Messina Copper.
The term loan facility of up to $31,3-million would put ACU’s borrowings from ZCI onto a more permanent footing, and would be used by Messina to repay the bridign loan, the company said on Friday.
The new term loan facility would be done in two tranches, with tranche A providing an amount of $8,37-million, which was convertible into ordinary shares of 1p each in ACU.
Tranche B of the term loan facility is for an amount up to $22,7-million, and is not convertible.
ZCI said that the term loan facility would only become effective when approved by its shareholders and the security over Messina's assets, including the Mowana mine, has become effective.
The approval of ZCI's shareholders is expected to occur in September and security is expected to become effective during July.