ZCCM Invs.Hldgs PLC ZCCM-IH Corporate Guarantee with Atlas Mara (8346T)

TIDMZCC

RNS Number : 8346T

ZCCM Invs.Hldgs PLC

27 July 2022

SENS ANNOUNCEMENT

(the "Notice" or "Announcement")

ISSUER

ZCCM INVESTMENTS HOLDINGS PLC ("ZCCM-IH")

[Incorporated in the Republic of Zambia]

   Company registration number:        119540000771 
   Share Code:                                           ZCCM-IH 
   ISIN:                                                       ZM0000000037 
   Authorised by:                                     Chabby Chabala - Company Secretary 

SPONSOR

Stockbrokers Zambia Limited

[Founder Member of the Lusaka Securities Exchange]

[Regulated and licensed by the Securities and Exchange Commission of Zambia]

   Contact Number:                 [phone] 
   Website:                                www.sbz.com.zm 

APPROVAL

The captioned Notice or Announcement has been approved by:

   i.      the Lusaka Securities Exchange ("LuSE") 
   ii.    the Securities and Exchange Commission ("SEC") 
   iii.   Stockbrokers Zambia Limited ("SBZ") 

RISK WARNING

The Notice or Announcement contained herein contains information that may be of a price-sensitive nature.

Investors are advised to seek the advice of their investment advisor, stockbroker, or any professional duly licensed by the Securities and Exchange Commission of Zambia to provide securities advice.

ISSUED: 26 July 2022

ZCCM INVESTMENTS HOLDINGS PLC

[Incorporated in the Republic of Zambia]

Company registration number: 771

Share Code: ZCCM-IH

ISIN: ZM0000000037

["ZCCM-IH" or "the Company"]

TRANSACTION ANNOUNCEMENT

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              The provision of USD 15 million Corporate Guarantees 
  Transaction                     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              Provision of USD 15 million Corporate Guarantee 
  of the Transaction                   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. 
                                ------------------------------------------------------------------------ 
 

By Order of the Board

Chabby Chabala

COMPANY SECRETARY

Issued in Lusaka, Zambia on 26 July 2022

 
                            Lusaka Securities Exchange Sponsoring Broker 
==================================================================================================== 
   T | [phone] 
 
    E | [e-mail] 
 
    W | www. sbz.com.zm 
 
    Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated 
    by the Securities and Exchange Commission of Zambia. 
  ================================================================================================== 
 

First Issued on 26 July 2022

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END

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July 27, 2022 02:00 ET (06:00 GMT)