KIG Mining Plc Announces That It Has Secured a 10 Million Line of Fundingadmin
Under an agreement signed on 7 July 2009, GEM Global Yield Fund Limited, the UK based private investment group, has agreed to provide KIG Mining Plc with €10 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.
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 €1.00 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.