| Mon 6 Jul 2009, 8:33 | | BCD - BRC DiamondCore - BRC Diamondcore Provides Further Update On Liquidation |
|
BCD
BCD
BCD - BRC DiamondCore - BRC Diamondcore Provides Further Update On Liquidation
Proceedings Regarding Its Subsidiary, Diamond Core Resources
BRC DIAMONDCORE LTD.
(Incorporated in Canada)
(Corporation number 627115-4)
Share code: BCD & ISIN Number: CA05565C1095
("BRC DiamondCore" or "the Company")
BRC DIAMONDCORE PROVIDES FURTHER UPDATE ON LIQUIDATION PROCEEDINGS REGARDING
ITS SUBSIDIARY, DIAMOND CORE RESOURCES
Toronto, Canada and Johannesburg, South Africa - July 3, 2009 - BRC
DiamondCore Ltd. ("BRC" or the "Company") (TSX - "BCD"; JSE - "BCD") announces
that further to its earlier press release of today, the Company has been
informed that the liquidation application referred to in that announcement was
granted by the Northern Cape High Court (the "judgment"). The applications to
reopen the application for liquidation and to postpone the application to
reopen were both refused prior to the delivery of the judgment.
The judgment applies to the Company`s wholly-owned subsidiary in South Africa,
Diamond Core Resources (Pty) Ltd. ("DCR"). DCR holds the Company`s South
African projects and assets.
The Company will be appealing the judgment, initially as the judgment
creditors claim is disputed and secondly in that, as announced, the Company
entered into a heads of agreement with KIG Mining Plc ("KIG") with regard to
the proposed purchase by KIG of BRC`s South-African-based alluvial diamond
projects, consisting of the Silverstreams, De Kalk, Muishoek, Sanddrift and
Uitdraal projects, together with the processing plant, mining fleet and
equipment which are associated with these projects and which assets are held
through DCR. The disposal consideration would be sufficient to cover any
valid claims from South African creditors, which the Company has stated its
intention to settle.
The Company regards the South African DCR assets as non-material to the on-
going operations of the Company. The Company regards its core assets as its
exploration properties in the Democratic Republic of the Congo.
Pending the appeal and subsequent due legal process, the Company will remain
in control of DCR.
The ability to complete the asset sale transaction with KIG may be adversely
affected if the Company is unsuccessful in its appeal of the judgment.
BRC DiamondCore Ltd. is an African-focused diamond explorer active in South
Africa and the Democratic Republic of the Congo. 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.
For further information, please visit our website, www.brc-diamondcore.com, or
contact:
In Toronto: Martin D. Jones, Vice President, Corporate Development, (416) 366-
2221 or 1-800-714-7938.
In Johannesburg: Brian P. Scallan, Vice President, Finance +27 11 9582885.
Forward-Looking Information
This press release contains forward-looking information which is not comprised
of historical facts. Forward-looking information involves risks,
uncertainties and other factors that could cause actual events, results,
performance and opportunities to differ materially from those expressed or
implied by such forward-looking information. Forward looking information in
this press release includes, but is not limited to, the completion of the
asset sale transaction with KIG (the "Sale"), the expected effect of the Sale
on the Company`s financial position and the expected terms and conditions of
the Sale. Factors that could cause actual results to differ materially from
those described in such forward-looking information include, but are not
limited to, the Company being unsuccessful in its appeal of the judgment in
respect of the liquidation application, failure to complete the Sale in
accordance with all of the terms contemplated by the agreement with KIG,
adverse general market conditions, adverse changes in diamond prices, foreign
currency fluctuations, inflation, political developments in South Africa,
changes to regulations affecting the Company`s activities, delays in obtaining
or failure to obtain required project approvals and those other risks set out
in the Company`s public documents filed on SEDAR. Although the Company
believes that the assumptions and factors used in preparing the forward-
looking information are reasonable, undue reliance should not be placed on
such information, which only applies as of the date of this press release, and
no assurance can be given that such events will occur. The Company disclaims
any intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events or
otherwise, other than as required by law.
Johannesburg
06 July, 2009
Sponsor
Arcay Moela Sponsors Pty Limited
Date: 06/07/2009 08:33:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
