Further Re IFC Equity Subscription
July 02 2009 - 6:19AM
UK Regulatory
TIDMKIW
RNS Number : 0060V
Kiwara PLC
02 July 2009
02 July 2009
Registration number: 01760458
JSE: KWR
AIM: KIW
ISIN: GB0007702953
KIWARA PLC
("Kiwara" or "the company")
* SPECIFIC ISSUE OF SHARES FOR CASH TO THE INTERNATIONAL FINANCE
CORPORATION ("IFC")
* THE GRANT OF AN OPTION TO SUBSCRIBE FOR ADDITIONAL SHARES TO THE IFC
* FURTHER CAUTIONARY ANNOUNCEMENT
1. Introduction
Further to the cautionary announcements, the last of which was published on 12
June 2009, shareholders are advised that Kiwara has, subject to the fulfillment
of the condition precedent, entered into an agreement in terms of which it
will allot and issue new Kiwara ordinary shares to the IFC as a specific issue
of shares for cash at a subscription price of US$ 6 million at 18.697 UK pence
per share, being the 15 day weighted average price on AIM to 29 April 2009 ("the
specific issue of shares"). Subject to the implementation of the specific issue
of shares the company also grants the IFC an option to subscribe for a maximum
of a further US$9 million in Kiwara shares, at an option exercise price of 37 UK
pence per share, at any time prior to the fifth anniversary of the subscription
date ("the option share issue") (collectively "the transaction"). The specific
issue of shares will result in the issue of approximately 19.5 million Kiwara
shares, but the actual number of shares to be issued will only be determined by
the US Dollar / Great Britain Pound exchange rate on the subscription date which
will be within 5 business days of the condition precedent having been met.
2. Rationale
Kiwara is an exploration company with a focus on base metals in the Republic of
Zambia, which is a major copper producing country. The purpose of the proposed
investment is to assist in the financing of the company's ongoing exploration of
the Kalumbila, Kawako and other regional targets within Prospecting Licence 267
in north western Zambia.
3.Conditions Precedent
The transaction is subject to approval thereof by the requisite majority of
Kiwara's shareholders at a general meeting.
4. Further documentation and further cautionary announcement
A circular to shareholders containing the requisite information pertaining to
the transaction and convening a meeting of shareholders will be posted to
shareholders in due course.
A further announcement containing the financial effects of the transaction will
be published shortly. Shareholders are therefore advised to continue to exercise
caution when dealing in the Company's securities until the publication of the
financial effects.
For further information, please contact:
Kiwara Plc Tel: +44 (0)20 7581 4477
Colin Bird, Chairman
Peter Vivian-NealTel: +260 (0) 211 293899
Chief Executive Officer
Sasfin Capital, Johannesburg
Brian Christie, Corporate FinanceTel: +27 (0) 11 809 7511
FinnCap, London
Matthew Robinson, Corporate Finance Tel: +44 (0)20 7600 1658
Bishopsgate Communications Ltd
Suzanne Johnston-Walsh Tel: +44 (0)20 7562 3359
This information is provided by RNS
The company news service from the London Stock Exchange
END
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