ACU Payment to Bondholders and Natasa

ACU announce that, today it unconditionally paid to the account of the trustee of the holders of bonds issued by ACU’s wholly owned subsidiary Messina Copper (Botswana) (Proprietary) Limited (“Messina”), BWP 153,091,666.66 (approx. US$20.4 million at an exchange rate of US$1/BWP7.5), being the full principal amount owing under the bonds together with accrued but unpaid interest. The trustee for the bondholders had previously issued a notice calling for the redemption of bonds.

In addition, ACU today paid BWP 15,659,389.64 (approx. US$2.1million) to the account of Natasa Mining Limited’s Botswana solicitors being the aggregate amounts, less certain deductions in relation to some disputed claims, owing to Natasa as a result of debts of Messina’s trade creditors acquired by Natasa. ACU has also paid Natasa’s solicitors US$1.505m being the amount required to repay Natasa’s original bridge loan to ACU together with interest.

ACU believes that virtually all of the claims of Natasa against ACU and any of its subsidiaries that were identified in its petition for the provisional liquidation of Messina have now been satisfied in full. With remaining proceeds in hand from the previously announced financing package provided by Zambia Copper Investments Limited ACU considers that it would be inappropriate for any remaining disputes in relation to monies owed by ACU or its subsidiaries to be determined in insolvency proceedings and that the liquidation petition should be dismissed. Small creditors will still be repaid in full in cash from the proceeds of the previously announced financing package as their debts become due.

ACU and ZCI look forward to the completion of all outstanding matters, so that mining operations can recommence, cash can start to flow in following production and sale, and an exciting future for ACU can begin in full.