On 26 July, 2022, ZCCM-IH announced through a statement issued by the Company Secretary that it has agreed to provide Corporate Guarantees to Atlas Mara amounting to US $15 million for Mopani Copper Mines.
The Board wishes to inform the shareholders and the market that ZCCM Investments Holdings Plc (“ZCCM-IH” or “the Company”), has agreed to provide Corporate Guarantees to Atlas Mara Bank for the amount of USD 15 million (the “Transaction”).
In line with the requirements of Section 9 of the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the key features of the Transaction are as follows:
| Particulars of the Transaction |
The provision of USD 15 million Corporate Guarantees Atlas Mara by ZCCM-IH for the provision of a Letter of Credit and Working Capital to Mopani Copper Mines Plc (“MCM”). |
| Guaranteed Amount | • USD 15 Million |
| Other significant terms of the Transaction |
Provision of USD 15 million Corporate Guarantee to Atlas Mara comprising: • USD 5 Million Letter of Credit from Atlas Mara; and • USD10 Million Overdraft Facility from Atlas Mara for twelve months. |
| Effective Date | 22 June 2022 |
| Rationale for the Transaction |
The support of ZCCM-IH to the operations of MCM is quite critical at this juncture. MCM needs working capital urgently in order to address the following issues: • Purchase of third-party concentrates; • Financing of mobile equipment; and • Recurring working capital needs. |
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