Mining investment company Zambia Copper Investments Ltd said on Tuesday its $22.5 million financing package for exploration company African Copper Plc was closer to completion after it agreed not to seek repayment of an outstanding debt at least until the financing was complete.
Along with the financial package deal of May 11, the companies also entered into a binding debt assignment agreement with African Copper's mining contractor Moolman Mining Botswana (Pty) Ltd under which Moolman assigned its $8 million outstanding debt to Zambia Copper at a price equal to 50 percent of the face value of the debt.
Moolman will not be taking up its portion of the package to large trade creditors and also has terminated all agreements with African Copper, Zambia Copper said.
Zambia Copper had proposed on Monday that African Copper's large trade creditors -- the mining contractor and the engineering, procurement, contracting and management contractors -- would be paid in cash 40 percent of monies owed and issued about 48 million shares in full and final settlement of debts due from African Copper.
Source: Reuters
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