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African Copper Plc: African Copper Plc: Mowana Mine Update

  //house-home.news-articles.net/content/2009/01/2 .. r-plc-african-copper-plc-mowana-mine-update.html
  Published in House and Home on Tuesday, January 20th 2009 at 23:17 GMT, Last Modified on 2009-01-20 23:18:50 by Market Wire
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LONDON, UNITED KINGDOM--(Marketwire - Jan. 21, 2009) - African Copper plc ("African Copper" or "The Company") (AIM:ACU)(TSX:ACU)(BOTSWANA:AFRICAN COPPER) announces that in response to the Company's current working capital deficit and immediate need to raise up to $US15 million for its working capital needs (the "Required Financing") and the sharp reduction in the demand and price for copper worldwide, the Company's Mowana mine in Botswana has been placed on care and maintenance pending the finalisation of negotiations to obtain the Required Financing. For at least the next three weeks all employees, except essential service workers, will take accrued paid leave.

Management is in discussion with a number of finance providers with a view to providing the Required Financing but there is no certainty that any of these discussions will result in the Company being able to raise the required additional funds. The Company's ability to continue to operate with its current working capital deficit and ultimately meet its obligations and continue as a going concern is dependent on the Company's ability to manage its relationships with existing creditors, re-negotiate the amount and timing of certain of its existing obligations which are due and to obtain the Required Financing. If the Company is unable to obtain the Required Financing, the Company will be unable (in the absence of alternate funding) to meet its obligations and continue as a going concern.

The ramp up to commercial production continued during the fourth quarter of 2008. However, following the first shipment of copper concentrate that was dispatched at the end of October, further production delays were experienced during the fourth quarter as a result of, among other things, lack of spare parts due to the Company's working capital deficit and unexpected equipment failures. These delays have resulted in production shortfalls during the quarter from the copper in concentrate production forecast of approximately 1,500 tonnes to 270 tonnes.

Forward-Looking Information

This press release contains forward-looking information. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding the duration of the period of time during which the Company's employees will be stood down, the Company's expectations regarding when the Mowana mine will resume operation and the Company's expectations regarding its ability to continue to operate in the short term pending negotiations of the Required Financing) are forward-looking information. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, changes in commodity prices and world copper markets and equity and/or debt markets, political developments and risks in Botswana, fluctuations in currency exchange rates, inflation, changes to regulations affecting the Company's activities, uncertainties relating to the availability and costs of financing needed in the future, the uncertainties involved in interpreting drilling results and other geological data, uncertainty regarding failure to convert estimated mineral resources to reserves, the possibility that actual circumstances will differ from the estimates and assumptions used in the mining plan for the Mowana Mine (there is no certainty that the production schedule, recoveries and/or operating costs proposed will be achieved), the grade and recovery of ore which is mined varying from estimates, the capital and operating costs varying significantly from estimates, delays in the development of projects and the other risks involved in the mineral exploration and development industry disclosed in the Company's most recent annual information form filed on SEDAR at [ www.sedar.com ]. All forward-looking information speaks only as of the date hereof and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.
Although the Company believes that its expectations reflected in the forward-looking information, as well as the assumptions inherent therein, are reasonable, forward-looking information is not a guarantee of future performance and, accordingly, undue reliance should not be put on such information due to the inherent uncertainty therein.

For further information please visit: [ www.africancopper.com ].