| Tue 29 Apr 2008, 9:30 | | BCD - BRC DiamondCore - Issues Corporate Update |
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BCD
BCD
BCD - BRC DiamondCore - Issues Corporate Update
BRC DIAMONDCORE LTD.
(Incorporated in Canada)
(Corporation number 627115-4)
Share code: BCD & ISIN Number: CA05565C1095
("BRC DiamondCore" or "the Company")
BRC DiamondCore Issues Corporate Update
Toronto, Canada and Johannesburg, South Africa - April 29, 2008: BRC DiamondCore
Ltd. (the "Company") (TSX - BCD; JSE - BCD) is pleased to provide the following
corporate update.
Highlights include:
The Company has filed a business acquisition report ("BAR") relating to the
acquisition by the Company of Diamond Core Resources Limited ("Diamond Core"),
as required by applicable Canadian securities laws. The pro forma consolidated
financial statements included in the BAR illustrate the improvement in the
Company`s balance sheet in terms of the combined business. A copy of the BAR
can be obtained from SEDAR at www.sedar.com and from the Company`s website at
www.brc-diamondcore.com.
Since the acquisition of Diamond Core on February 11, 2008 and as previously
announced, the Company has realized approximately US$2.4 million from diamond
sales from the Company`s South African properties.
The Company`s long-term and supportive largest shareholder, Banro Corporation,
remains fully committed to the Company and its long-term success.
Two of the Company`s bulk sampling sites, the Paardeberg East kimberlite project
and the Silverstreams alluvial project, are fully operational and a third, the
De Kalk alluvial project, is being operationalised. Construction of a bulk
sampling plant for a fourth project, the Kwango River alluvial project, is well
advanced.
The Company has filed a business acquisition report ("BAR") relating to the
acquisition by the Company of all of the outstanding shares of Diamond Core
Resources Limited ("Diamond Core"), as required by applicable Canadian
securities laws. The BAR includes an unaudited pro forma consolidated balance
sheet of the Company as at December 31, 2007 and an unaudited pro forma
consolidated statement of operations of the Company for the year ended December
31, 2007. The pro forma balance sheet has been prepared assuming that the
acquisition of Diamond Core occurred on December 31, 2007 (and therefore
consolidates the Diamond Core assets as at that date). The pro forma statement
of operations has been prepared assuming that the acquisition of Diamond Core
occurred on January 1, 2007 (and therefore consolidates the activities of
Diamond Core during 2007). These pro forma financial statements illustrate the
improvement in the Company`s balance sheet which resulted from the acquisition
of Diamond Core. The BAR also includes Diamond Core`s unaudited interim
consolidated financial statements as at and for the six month period ended
December 31, 2007 and Diamond Core`s audited consolidated financial statements
as at and for the year ended June 30, 2007. A copy of the BAR can be obtained
from SEDAR at www.sedar.com and from the Company`s website at www.brc-
diamondcore.com.
The Company currently operates three trial mining/bulk sampling sites - at
Paardeberg East, Silverstreams and De Kalk - in South Africa`s Northern Cape
Province. More than 5,000 carats have been sold in 2008, with prices realised
for the production from Silverstreams and Paardeberg East above expectation.
Approximately US$2.4 million has been received by the Company to date from these
diamond sales (see the Company`s press releases dated April 24, 2008 and March
4, 2008). The diamond product is technically analysed by independent diamond
consultants and subsequently sold on an open tender system.
The Company`s long-term and supportive largest shareholder, Banro Corporation,
remains fully committed to the Company and its long-term success. As previously
disclosed, Banro Corporation has guaranteed a Cdn$6 million bridging loan
provided to the Company by a Canadian financial institution. This loan has been
applied in part to:
- the Company`s Kwango River Project in the Democratic Republic of the Congo
(the "DRC"), where the Company expects to conduct bulk sampling operations in
the near future, and for which the bulk sampling plant is 90% complete; and
- intensive exploration for primary kimberlite sources in the Tshikapa area of
the DRC.
The bulk sampling plant for the Kwango River Project will be commissioned at the
Paardeberg East site in South Africa before being transported to the DRC.
To clarify the Company`s position in respect of its dispute with former black
economic empowerment associate Sefalana Minerals and Resources (Pty) Limited
("Sefalana"), the Company previously declared its agreements with Sefalana void
ab initio due to, among other things, Sefalana not having met certain conditions
precedent, and it is the opinion of the Company`s legal advisors that Sefalana`s
subsequent claims are without merit. The Company has recently undergone a
rigorous due diligence as part of the transaction process with Diamond Core.
The Company has in good faith and without prejudice to its sound legal position,
engaged with the CEO of Sefalana, Lesedi Rakgokong, in order to arrive at an
amicable solution for Sefalana. Should any legal proceedings be instituted by
Sefalana, legal counsel to the Company has been instructed to defend such
action.
The Company is an African-focused diamond explorer active in South Africa and
the DRC. Led by a management team with extensive experience in diamond
exploration and mine development, the Company has a broad spectrum of projects
ranging from advanced stage trial mining operations through grass-roots
exploration. The Company`s projects comprise both prospective alluvial gravels
and primary kimberlite targets. The Company works in a systematic and
responsible manner to discover, assess and develop diamond resources for the
benefit of its shareholders and local stakeholders.
SPONSOR
River Group
For further information, please visit our website, www.brc-diamondcore.com, or
contact:
In Toronto: Martin D. Jones, Vice President, Corporate Development, at
(416) 366-2221 or 1-800-714-7938.
In Johannesburg: James Duncan, Russell & Associates, at 27 11 880-3924.
This press release contains forward-looking statements. 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 relating to diamond
sales, future diamond sales, future production, and the Company`s plans with
respect to the exploration and development of its properties) are forward-
looking statements. These forward-looking statements reflect the current
expectations or beliefs of the Company based on information currently available
to the Company. Forward-looking statements are 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 statements, 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, the possibility that
future exploration results will not be consistent with the Company`s
expectations, changes in equity markets, changes in diamond markets, foreign
currency fluctuations, political developments in South Africa or the DRC,
changes to regulations affecting the Company`s activities, uncertainties
relating to the availability and costs of financing needed in the future, delays
in obtaining or failure to obtain required project approvals, the uncertainties
involved in interpreting geological data and the other risks involved in the
diamond exploration business. Any forward-looking statement speaks only as of
the date on which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information, future events
or results or otherwise. Although the Company believes that the assumptions
inherent in the forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and accordingly undue
reliance should not be put on such statements due to the inherent uncertainty
therein.
Date: 29/04/2008 09:30:02 Produced by the JSE SENS Department.
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