Further Re IFC Equity Subscription

 

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: [phone] 
Colin Bird, Chairman 
 
 
Peter Vivian-NealTel: [phone] 
Chief Executive Officer 
 
 
Sasfin Capital, Johannesburg 
Brian Christie, Corporate FinanceTel: [phone] 
 
 
FinnCap, London 
Matthew Robinson, Corporate Finance    Tel: [phone] 
 
 
Bishopsgate Communications Ltd 
Suzanne Johnston-Walsh  Tel: [phone] 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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