ZCI suspends process to offload African Copper interest
Aim-listed African Copper on Thursday announced that its majority shareholder ZCI had suspended the process it initiated in February to unlock value from its investment in the company.
The process may have resulted in ZCI’s disposal of its interest.
The ZCI board’s suspension decision was driven by adverse global market conditions facing junior mining companies and a general increased risk aversion among investors as a result of economic uncertainty and volatility.
“ZCI has received several proposals that we do not believe reflect the intrinsic value of African Copper and, accordingly, we have chosen not to proceed with these at this juncture,” the company said in a statement.
Meanwhile, ZCI was continuing to work towards realising the full value of its investment in the Botswana-focused copper producer, and was encouraged by the operational performance and turnaround strategy implemented over the last year.
“While recent production has exceeded our expectations, African Copper continues to evaluate options to enhance the output and life of its operations by increasing the confidence in its resource base and the economic extraction thereof,” said ZCI CEO Tom Kamwendo.
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