KIG Mining Plc.
KIG Mining Plc:KIG Mining Plc secures EUR10 million equity line of credit
KIG Mining Plc / Corporate Action Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- KIG Mining Plc - (5KM.F) - ('KIG' or 'the Company') announces that it has secured access to a EUR10 million line of funding. Under an agreement signed on 7 July 2009, GEM Global Yield Fund Limited ('GEM Global'), the UK based private investment group, has agreed to provide KIG Mining Plc with EUR10 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 EUR1.00 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. About KIG Mining Plc. KIG Mining Plc is a public company, registered under the laws of the United Kingdom. The southern African operations are managed from the KIG Mining offices in Pretoria, South Africa with field offices near the relevant mining sites. The company's business is focused on gold and diamond mining and has been active in various concession areas in West Africa. Since 2008, the company started moving interest to southern Africa and has been investigating several opportunities in the sub-continent. During the first quarter of 2009 it was ultimately decided by KIG Mining Plc's board of directors to move the focal point to southern Africa in order to benefit from a higher mineral deposit, proven quality and minimised risk. First properties have been acquired on the Orange River, downstream from the legendary Kimberley region in South Africa, known for its proven high quality gem diamonds. Progressive negotiations are on track regarding the acquisition of rich gold deposits in eastern South Africa as well as an operation on kimberlitic pipes in Botswana. Various other alluvial and kimberlitic deposits are also under consideration. With the current acquisitions, KIG Mining Plc is foreseeing a highly lucrative long term business growth in this historically proven mineral rich region. KIG MINING PLC Thames House, Portsmouth Road Esher, Surrey KT10 9AD United Kingdom Contact: Mr. Vicken Kaprelian (CEO) Tel: +27 837 377 543 Fax: +27 866 706 978 Email: ir@kigmining.com 14.07.2009 Financial News transmitted by DGAP ----------------------------------------------------------------------
Latest News
Latest Reports
No Reports found
Upcoming Events
No Events found
Webcasts
No Webcasts found