| Wed 15 Jul 2009, 14:15 | | BCD - BRC DiamondCore - KIG Mining PLC secures Euro10 million equity line of |
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BCD
BCD
BCD - BRC DiamondCore - KIG Mining PLC secures Euro10 million equity line of
credit - (Frankfurt Exchange: 5KM.F / XETRA: 5KM.DE)
BRC DIAMONDCORE LTD.
(Incorporated in Canada)
(Corporation number 627115-4)
Share code: BCD & ISIN Number: CA05565C1095
("BRC DiamondCore" or "the Company")
PRESS RELEASE
KIG MINING PLC SECURES Euro10 MILLION EQUITY LINE OF CREDIT
(FRANKFURT EXCHANGE: 5KM.F / XETRA: 5KM.DE)
KIG Mining Plc - (5KM.F) - ("KIG" or "the Company") announces that it has
secured access to a Euro10 million line of funding.
Under an agreement signed on 07 July 2009, GEM Global Yield Fund Limited ("GEM
Global"), the UK based private investment group, has agreed to provide KIG
Mining Plc with Euro10 million over the next three years in the form of an
equity line of credit. KIG will control the timing and maximum amount of any
draw down under this credit line and is not obliged to draw on the funds on
offer.
On drawdown, KIG will issue ordinary shares to GEM Global at a price per share
which represents a 10% discount to the average closing price of KIG ordinary
shares over a 15 trading day period prior to drawdown.
KIG also agreed to issue 2 000 000 warrants. The warrants will be exercisable
for a period of four years from the issue date at an exercise price of
Euro1.00 each.
KIG Mining Plc has recently acquired BRC Diamondcore`s alluvial diamond
projects in South Africa. One of the projects, Silverstreams, is an active
productive operation which KIG plans to develop and expand and the remaining
projects will be brought into full operation within due time.
KIG will be utilising the line of credit to expand the production of the
Silverstreams plant to maximum capacity. In addition to the production, the
plant will be upgraded to utilise the latest technology in diamond recovery to
maximise yield.
The areas acquired by KIG are known and proven to yield high quality diamonds
in excess of 50 carat in weight.
KIG Mining Plc entered into a joint venture agreement with South African based
Rox Mining (Pty) Ltd. to manage and run the southern African projects.
The GEM Group is a UK based US$3.4 billion private equity investment group
founded in 1991, with offices in Paris, London, Hong Kong and New York. They
have completed more than 270 transactions in 55 countries across the world.
They specialise in private investments but also invest in public listed
companies. The GEM Group operates in the US and internationally, across a
broad spectrum of industries and transactional structures. Investments of GEM
Group usually involve engagement in shares. GEM Group often provides financing
for an entire undertaking or acts as the leading investor.
GEM has expressed an interest in participating in the financing for KIG
Mining Plc`s remaining projects.
KIG Mining Plc
South Africa - +27 83 7377543
info@kigmining.com
Investor Relations
CDC Capital AG
Germany - +49 89 4805806-18
IR@kigmining.com
Johannesburg
15 July 2009
Sponsor
Arcay Moela Sponsors (Proprietary) Limited
(Registration number 2006/033725/07)
Date: 15/07/2009 14:15:01 Produced by the JSE SENS Department.
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