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”).
|| 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.
||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.