12th Dec 2008 16:02
For immediate releaseStock Exchange Announcement12 December 2008 COPPER RESOURCES CORP ("CRC" or "the Company") Operational and Financial Update
Copper Resources Corp would like to draw attention to the announcement released this morning by Metorex Limited ("Metorex") relating in part to a strategic review of CRC's operations and financing options.
Kinsenda Mine
As stated in its announcement, Metorex currently lacks the financial resources to fast-track the development of the Kinsenda mine. Also, in light of the current state of the international capital markets and irrespective of Metorex's current financial capacity, it is considered to be inappropriate for Metorex to continue providing 100% of the funding required for the continued development of the mine. Therefore, Metorex has, on behalf of CRC, commenced discussions to secure long term and project-specific finance to develop this mine. Meanwhile, the operating costs of the mine are being reduced and development work slowed down.
Musoshi Mine
Further negotiations have been held with the Revisitation Committee appointed by the Government of the DRC over the title to assets held by MMK, a 75% subsidiary of CRC. Currently CRC's management intend that the Musoshi mine, currently on care and maintenance, will, subject to agreement, be returned to Sodimico (a partner of MMK) as part of the mineral title review process settlement. A further announcement will be made in due course once negotiations have concluded.
Debt financing
Metorex intends to exercise its rights in terms of its funding agreement with CRC to capitalise part of its loans in CRC, thereby further increasing its shareholding in CRC. A further announcement will be made as soon as the terms of this capitalization are agreed.
Proposed delisting of CRC
The Company confirms that the process of securing shareholder approval for the de-listing of CRC from AIM has commenced. A further announcement will be made in due course.
CAMEC announcement
The Company notes the announcement by Central African Mining & Exploration Company plc ("CAMEC") on 11 December 2008, in respect to disenfranchisement of CAMEC's interests in CRC.
Enquiries: Copper Resources Nabarro Wells & GTH Corporation Co. Limited Communications Jeff Carel Hugh Oram Toby Hall Company Secretary +27 (0) +44 (0) +44 (0) 11 803 1073 20 7634 4700 20 7153 8035
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