| Thu 2 Jul 2009, 11:00 | | KWR - Kiwara - Kiwara and International Finance Corporation finalise initial US |
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KWR
KWR
KWR - Kiwara - Kiwara and International Finance Corporation finalise initial US
$6 Million Equity Subscription
Kiwara plc
Registration number: 01760458
JSE: KWR
AIM:KIW
ISIN:GB0007702953
("Kiwara" or the "Company" or the "Group")
2nd July 2009
Kiwara and International Finance Corporation finalise initial US $6 Million
Equity Subscription
The board of Kiwara plc are pleased to announce that the contemplated equity
subscription announced on 29th April 2009, to be made by the International
Finance Corporation ("IFC"), has been finalised, subject only to Kiwara
shareholder approval.
The key features of the subscription are:
- An initial strategic equity subscription of US $6.0 million (GBP3.6
million) with a three year warrant package;
- Total equity investment package of up to US $15.0 million;
- Investment by IFC provides Kiwara with a highly credible strategic investor
necessary for the progression of the Company`s rapidly emerging base metals
projects in an environmentally and socially sustainable manner;
- The initial subscription allows Kiwara to extend and consolidate the
Kalumbila copper project and to extend strike and infill drilling at Kawako
where exceptional nickel sulphide values have been reported.
The Subscription
On 29th April 2009 the Company reported that the IFC had disclosed its
intention, subject to board approval, to purchase equity to value of US $6
million. The price as determined at that time was the fifteen day moving
weighted average price, which at the time of the disclosure was 18.697p per
share. The warrant package consists of one full warrant per ordinary share
purchased, and is valid for three years from completion and is struck at a price
of 37p, which is double the initial investment price.
The initial subscription will result in the issue of approximately 19.5 million
shares; the actual number of such shares being determined by the prevailing US
Dollar - Sterling exchange rate upon the subscription date. The IFC will have
the option to purchase the same number of shares within the three year period at
37p per share.
This subscription is subject to approval by Kiwara shareholders, for which an
EGM will be called; the subscription date will be within 5 business days of
shareholder approval.
Colin Bird (Chairman) said "we are naturally delighted that the IFC have taken
such a significant stake in our rapidly developing Zambian focused base metals
company. The investment will form the core of the funds to consolidate our
Kalumbila copper deposit and investigate the size potential of our Kawako nickel
discovery. We look forward to working with the IFC"
Saleem Karimjee, IFC Country Manager for Southern Africa said "IFC`s investment
in Kiwara demonstrates our commitment to supporting projects in regions where
economic growth is most needed and that are environmentally and socially
sustainable. IFC`s investment and Kiwara`s potential participation in IFC`s
program to support small and medium enterprises linked to mining is the start of
a partnership will increase economic growth and create more opportunities for
Zambians."
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)20 7581 4477
Colin Bird, Chairman
Peter Vivian-Neal, Chief Executive Officer Tel: +260 (0) 211 293899
Sasfin Capital, Johannesburg
Brian Christie, Corporate Finance Tel: +27 (0) 11 809 7511
FinnCap, London
Matthew Robinson, Corporate Finance Tel: +44 (0)20 7600 1658
Bishopsgate Communications Ltd
Suzanna Johnston-Walsh Tel: +44 (0)20 7562 3359
Date: 02/07/2009 11:00:01 Produced by the JSE SENS Department.
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