15 Nov 2007 07:00
For immediate release 15 November 2007
Stock Exchange Announcement
COPPER RESOURCES CORPORATION ‚£56.25 MILLION PRIVATE PLACEMENT OF SHARES
Copper Resources Corporation (AIM: CRC.L) ("CRC", the "Company") is pleased to announce that the Company has placed 45,000,000 new common shares with Glencore International AG ("Glencore") at 125 pence per share for total gross proceeds of ‚£56.25 million ("the Placing").
Glencore is a leading privately held, diversified natural resources company with worldwide activities in the smelting, refining, mining, processing, purchasing, selling and marketing of metals and minerals, energy products and agricultural products.
The Placing is a major milestone for the Company as, in addition to acquiring a strong strategic partner, it is now fully funded to:
i. fast-track its Kinsenda copper restart project;
ii. complete a feasibility study at Musoshi, an underground copper mine, like
Kinsenda, that has previously been operated; and
iii. start exploration at Lubembe, an advanced copper exploration project.
All three projects are located in the south of Katanga Province in the Democratic Republic of Congo (DRC), where CRC holds a 75% interest through its subsidiary, MiniĬre de Musoshi et Kinsenda SARL ("MMK").
A portion of the funds will also be used for general corporate expenses and for the completion of a new scoping study that will determine how to proceed with the bankable feasibility study at the Company's Hinoba-an project in the Philippines.
Following the Placing, Glencore's stake will represent 35.7% of the enlarged share capital of CRC. However, the Board, acting through the Independent Directors of the Company, has resolved that, for the reasons stated above, the Placing is in the best interests of the Company and its shareholders and accordingly has exercised the power reserved to it in the Company's articles of association to waive the requirement for Glencore to extend an offer to the holders of the remaining issued shares in the Company.
Application has been made for the newly issued common shares to be admitted to the AIM market of the London Stock Exchange - trading is expected to commence on 20 November 2007.
Following the Placing, CRC will have 126,065,064 common shares in issue.
Copper Resources Nabarro Wells & Fox-Davies GTH Corporation Co. Limited Capital Limited Communications Mitchell Alland Hugh Oram Richard Hail Toby Hall Executive Vice Chairman +44 (0) +44 (0) +44 (0) 207 936 +44 (0) 5200 78 7569 5563 20 7710 7400 20 7153 8035
COPPER RESOURCES CORPORATION