| Wed 25 Nov 2009, 10:03 | | BCD - BRC Diamondcore Closes Financing and Debt Settlements |
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BCD
BCD
BCD - BRC Diamondcore Closes Financing and Debt Settlements
BRC DIAMONDCORE LTD.
(Incorporated in Canada)
(Corporation number 627115-4)
Share code: BCD & ISIN Number: CA05565C1095
("BRC DiamondCore" or "the Company")
BRC DIAMONDCORE CLOSES FINANCING AND DEBT SETTLEMENTS
Toronto, Canada - November 24, 2009 - BRC DiamondCore Ltd. (the "Company") (TSX
- "BCD"; JSE - "BCD") announces that, further to its November 10, 2009 press
release, it has closed a non-brokered private placement of 20,000,000 units of
the Company (the "Units") at a price of Cdn$0.05 per Unit for proceeds to the
Company of Cdn$1,000,000. Each Unit is comprised of one common share of the
Company and one warrant of the Company (a "Warrant"), with each Warrant
entitling the holder to purchase one common share of the Company at a price of
Cdn$0.066 for a period of four years. The Company intends to use the proceeds
from this financing (the "Financing") for working capital and general corporate
purposes. Directors of the Company purchased a total of 12,250,000 of the Units
issued under the Financing, including 7,250,000 Units purchased by Arnold T.
Kondrat and 3,500,000 Units purchased by Simon F. W. Village.
The Company also announces that, further to its November 10, 2009 press release,
it has closed debt settlement transactions with certain of its creditors,
pursuant to which such creditors agreed to accept common shares of the Company,
issued from treasury by the Company, in satisfaction of indebtedness owed to
them by the Company (the "Debt Settlements"). The total number of common shares
issued by the Company to the creditors under the Debt Settlements is 43,317,330
shares (the "Debt Shares"), and the total amount of Company debt settled by such
share issuances is Cdn$8,663,466.
Taking into account the shares issued under the Financing and the Debt
Settlements (but not taking into account the shares issuable on exercise of the
Warrants), the Company now has outstanding 89,408,640 common shares.
One of the creditors involved in the Debt Settlements was Banro Corporation
("Banro"). 31,689,955 of the Debt Shares were issued to Banro pursuant to its
debt settlement agreement, such that Banro now owns a total of 35,433,987 common
shares of the Company, which represents 39.63% of the outstanding common shares
of the Company.
BRC DiamondCore Ltd. is an African-focused diamond explorer with projects in the
Democratic Republic of the Congo. Led by a management team with extensive
experience in diamond exploration, 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.
JOHANNESBURG
25 November 2009
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.
Date: 25/11/2009 10:03:35 Produced by the JSE SENS Department.
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