"African Copper is pleased to announce that the resolution proposed at the company's Extraordinary General Meeting (EGM) held on 9 January 2009 was duly approved by shareholders," the company said on Monday.The company, which operates Mowana Mine near Dukwi, announced in December that it was proposing to seek authority from shareholders to issue up to 750,000,000 new ordinary shares as it desperately needed cash before January 15 to meet its immediate working capital needs.
African Copper said in the event that shareholders did not approve the issue or receive alternative funding from other sources, it would not be able to meet its obligations and continue as a going concern beyond approximately January 15, 2009.The directors consider that the funds from the placing (assuming the placing raises net proceeds of approximately US$15 million), together with cash expected to be generated by the group from its operations, will be sufficient to fund its commitments for the next 12 months.The copper producing company says failure to raise the cash means it will not be able to fund and implement its interim plan geared to maximising operating margins and minimising capital and expenditure.As at 30 September 2008, the company had a working capital deficit of P7.3 million.
