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KIG Mining secures EUR10m line of funding

GEM Global Yield Fund, the UK based private investment group, has agreed to provide KIG Mining with EUR10m over the next three years in the form of an equity line of credit.

GEM Global Yield Fund, the UK based private investment group, has agreed to provide KIG Mining with EUR10m 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 ten per cent 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 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 using 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 use the latest technology in diamond recovery to maximise yield.

The areas acquired by KIG are proven to yield high quality diamonds in excess of 50 carat in weight.

KIG Mining has entered into a joint venture agreement with South African based Rox Mining to manage and run the southern African projects.

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