| Thu 2 Jul 2009, 12:00 | | KWR - Kiwara Plc - Specific issue of shares for cash to the international |
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KWR
KWR
KWR - Kiwara Plc - Specific issue of shares for cash to the international
finance corporation
KIWARA PLC
Registration number: 01760458
JSE: KWR
AIM: KIW
ISIN: GB0007702953
("Kiwara" or "the company")
* SPECIFIC ISSUE OF SHARES FOR CASH TO THE INTERNATIONAL FINANCE
CORPORATION("IFC")
* THE GRANT OF AN OPTION TO SUBSCRIBE FOR ADDITIONAL SHARES TO THE IFC
* FURTHER CAUTIONARY ANNOUNCEMENT
1. Introduction
Further to the cautionary announcements, the last of which was published
on 12 June 2009, shareholders are advised that Kiwara has, subject to the
fulfilment of the condition precedent, entered into an agreement in terms
of which it will allot and issue new Kiwara ordinary shares to the IFC as a
specific issue of shares for cash at a subscription price of US$ 6 million at
18,697 UK pence per share, being the 15 day weighted average price on AIM to
29 April 2009 ("the specific issue of shares"). Subject to the implementation
of the specific issue of shares the company also grants the IFC an option to
subscribe for a maximum of a further US$9 million in Kiwara shares, at an
option exercise price of 37 UK pence per share, at any time prior to the
fifth anniversary of the subscription date ("the option share issue")
(collectively "the transaction"). The specific issue of shares will result
in the issue of approximately 19.5 million Kiwara shares, but the actual
number of shares to be issued will only be determined by the US Dollar /
Great Britain Pound exchange rate on the subscription date which will be
within 5 business days of the condition precedent having been met.
2. Rationale
Kiwara is an exploration company with a focus on base metals in the Republic
of Zambia, which is a major copper producing country. 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.
3. Conditions Precedent
The transaction is subject to approval thereof by the requisite majority of
Kiwara`s shareholders at a general meeting.
6. Further documentation and further cautionary announcement
A circular to shareholders containing the requisite information pertaining to
the transaction and convening a meeting of shareholders will be posted to
shareholders in due course.
A further announcement containing the financial effects of the transaction
will be published shortly. Shareholders are therefore advised to continue to
exercise caution when dealing in the Company`s securities until the publication
of the financial effects.
2 July 2009
Waverley, Johannesburg
For further information, please contact:
Kiwara Plc Tel: +44 (0)20 7581 4477
Colin Bird, Chairman
Peter Vivian-Neal Tel: +260 (0) 211 293899
Chief Executive Officer
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 12:00:01 Produced by the JSE SENS Department.
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