| Wed 29 Apr 2009, 16:59 | | KWR - Kiwara Plc - Intention to Consider an Equity Investment and |
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KWR
KWR
KWR - Kiwara Plc - Intention to Consider an Equity Investment and
Cautionary Announcement
Kiwara plc
Registration number: 01760458
JSE: KWR
AIM: KIW
ISIN: GB0007702953
("Kiwara" or the "Company")
INTERNATIONAL FINANCE CORPORATION ("IFC") DISCLOSES INTENTION TO CONSIDER AN
EQUITY INVESTMENT OF US$6 MILLION IN KIWARA
CAUTIONARY ANNOUNCEMENT
Shareholders are advised that Kiwara is in advanced discussions with the IFC
which, if successfully concluded, may have a material effect on the price of the
company`s securities. Following field due diligence, the IFC is considering an
equity investment of US$6 million coupled with a warrants package ("the proposed
investment"). In accordance with the standard procedures of the IFC, a summary
of the proposed investment has now been disclosed to the public by the IFC in
advance of consideration by the IFC Board of Directors of the proposed
investment.
The purpose of the proposed investment is to assist in the financing of the
Company`s ongoing exploration of the Kalumbila, Kawako and other regional
targets within Prospecting Licence 267 in north western Zambia.
The key features of the proposed investment are:
-An equity investment of US$6 million with a warrants package
-Potential for further funding at Feasibility Study and at development stages
The disclosure documents are posted on the IFC website for 30 days prior to the
IFC Board of Directors` consideration of the proposed investment.
In light of the above, shareholders are advised to exercise caution when dealing
in the Company`s securities until a further announcement is made.
The text of the disclosure is posted on the IFC website at:
www.ifc.org/ifcext/spiwebsite1.nsf and will also be accessible on the Kiwara
website at www.kiwara.co.uk.
Colin Bird (Chairman) said "This proposed investment is of a sufficient
magnitude to allow the Company to release value in the project. To have IFC as
a strategic investor would give the Kiwara management team the confidence and
support to embark on an aggressive exploration campaign directed towards
resource definition and thereafter mine development."
About Kiwara:
Kiwara is an exploration company with a focus on base metals in the Republic of
Zambia, which is a major copper producing country.
Kiwara, through its majority owned subsidiary, Kalumbila Minerals, holds
Prospecting Licence 267 which is within the Kabompo Dome in North Western
Zambia, a geologically complex antiformal feature, which contains a number of
base metal and uranium targets. This is within the area considered to be the
western extension of the Copperbelt, an increasingly significant mining area
that contains the recently developed Kansanshi and Lumwana copper mines.
For further information, please contact:
Kiwara Plc
Tel: +44 (0)207 581 4477
Colin Bird, Chairman
Peter Vivian-Neal, Chief Executive Officer
Tel: +260 (0) 211 293899
Sasfin, Johannesburg
Brian Christie, Corporate Finance
Tel: +27 (0) 11 809 7511
FinnCap, London
Matthew Robinson, Corporate Finance
Tel: +44 (0) 20 7600 1658
Johannesburg
29 April 2009
Sponsor:
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 29/04/2009 16:59:27 Produced by the JSE SENS Department.
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