African Copper the copper production and Exploration Company, focused on Botswana, announced that it has secured an additional loan of USD 2.0 million from its controlling shareholder ZCI Limited. The purpose of the new loan is to provide the Company with further working capital for its Mowana Mine facilities.

The new USD2.0 million loan from ZCI is a secured loan facility with an interest rate of 9% repayable on March 31st 2013.

Interest will be accrued annually and interest payments deferred until March 31st 2013. The terms and conditions of the Facility are on substantially similar terms to the previous term loans from ZCI and bring ACU's total interest-bearing loans (including accrued interest) from ZCI to USD 64.9 million, excluding the existing convertible loan of a further USD 8.4 million.

As ZCI owns 84.19% of ACU's total issued ordinary share capital at the date of this announcement and is providing financing to the Company, the Facility falls within the definition of a related party transaction under Rule 13 of the AIM Rules for Companies. The independent directors of the Company consider, having consulted with its nominated adviser Canaccord Genuity Limited, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

Commenting, Jordan Soko, Acting Chief Executive of African Copper Plc, said, "The additional funds raised will provide the Company with the working capital to continue to improve production levels and highlights the continuing support of ZCI."