STOCKS NEWS UK SMALL-African Copper down on bond repay demand

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09:20GMT 15May2009-African Copper down on bond repay demand

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African Copper Plc (ACU.L) shares drop as much as 32 percent after it says it received a demand for the redemption of 150 million Botswana Pula ($22.3 million) bonds, calling for immediate repayment of the entire principal amount plus accrued interest.

The company says the bonds, issued by wholly owned subsidiary Messina Copper, were recently purchased by a third party and that it is seeking legal advice in relation to Messina's obligation.

Mike Stuart, analyst at Numis Securities, says bondholders are due to receive about $5 million, or 25 percent of the face value, of the bonds.

The third party "is now demanding full payment, which is another $15 million that African Copper doesn't have at the moment", he says.

To see African Copper's statement please click on [ID:nCu530738a]

Reuters messaging rm://julie.crust.reuters.com@reuters.net

09:13GMT 15May2009-Hansen runs out of puff post results

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