Jul 14 2009
GEM Global Yield Fund (GEM Global), a UK based private investment group, has agreed to provide KIG Mining 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, KIG Mining said today.
KIG Mining Plc 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.
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.
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.
The GEM Group is a UK-based $3,4 billion private equity investment group founded in 1991, with offices in Paris, London, Hong Kong and New York. It specialises in private investments, but also invests in listed companies.