Kimberley Metals Limited (ASX:KBL) Release Letter to Certain Non Resident Shareholders
Sydney, Australia (ABN Newswire) - On 27 July 2011 Kimberley Metals Limited (the Company) (ASX:KBL) announced a 1 for 6, pro-rata, non-renounceable rights issue of convertible notes to shareholders with an Australian or New Zealand address (the Offer).
After taking into account the number of shareholders with addresses elsewhere (Non Residents), the number and value of the convertible notes which would otherwise be offered to Non Residents and the costs of complying with the laws and requirements of places where convertible notes would be offered to Non Residents, it was determined that it was unreasonable to offer these notes to Non Residents. This determination was made pursuant to Listing Rule 7.7.1(a) of the ASX Listing Rules and section 9A of the Corporations Act 2001.
Despite our inability in the circumstances to extend the Offer to Non Residents, we do value our shareholders outside Australia and New Zealand and we set out below some brief information about the Offer as the convertible notes are expected to be quoted on the Australian Securities Exchange (ASX) and thereby be available for purchase by Non Residents.
Under the Offer, some 25,114,127 notes are being offered. In parallel with the Offer, the Company is placing up to 10 million notes primarily to financial institutions and professional and sophisticated investors (Placement). If the Offer and Placement are fully subscribed then the Company will issue a total of 35,114,127 notes to raise some A$13.343 million before costs of the issue.
Kimberley intends to use these funds as working capital primarily for expansion of its processing facilities at the Company's Mineral Hill mine and bringing forward resource and exploration drilling in highly prospective areas in close proximity to the Company's Pearse and Parkers Hill projects. Kimberley also intends to advance production of the Sorby Hills project to commence in 2013 with fresh drilling and geological interpretation of the substantial silver project at Manbarrum, 30 kilometres east of the Sorby Hills. Most of these initiatives would otherwise have to be deferred until sufficient cash flows were available from copper concentrate production at Mineral Hill.
These notes will be issued at 38 cents, pay interest at the rate of 10% pa, have a 5 year term and holders will be able to convert them to ordinary shares on a one for one basis at quarterly points during the 5 year term.
A Prospectus in relation to the Rights Issue was lodged with ASIC and ASX on 1 August 2011. A copy of the Prospectus as lodged with the ASX is available from the ASX website and the Company's website (http://www.kimberleymetals.com.au).
Full details of the terms and conditions of the Offer are contained in the Prospectus.
On behalf of the Board and management of the Company, thank you for your continued support.
About Kimberley Metals Limited:
Kimberley Metals Limited (ASX:KBL) became an independent entity in May 2008 when the shareholders of CBH Resources Limited agreed to the distribution of its 100% shareholding in Kimberley to CBH shareholders and was listed on ASX in February 2010. Kimberley’s aim is to quickly become an established precious and base metal producer and has assembled a balanced portfolio of assets to achieve this goal.
The Mineral Hill Mine is located in the northern part of the Lachlan Fold Belt in central-western New South Wales. Base metal mineralisation was discovered in the Mineral Hill area in 1908, with limited mining and prospecting occurring until the 1950s. Modern mining operations at Mineral Hill Mine were commenced in 1989 by Triako which operated a 200,000 tpa concentrator/CIL plant producing gold in copper concentrate and gold bullion. Mining ceased in late 2005 after producing in excess of 360,000 ounces of gold from at least five different ore zones. Kimberley has a substantial, wholly-owned, tenement holding at Mineral Hill, totalling 49 km2.
Since establishment, Kimberley has focused its efforts on identifying sufficient resources to support a re-start of operations at Mineral Hill. Exploration work to date has resulted in the discovery of high grade gold mineralisation at Pearse plus the evaluation and upgrade of the Parkers Hill Cu-Pb-Zn-Ag resource. Many additional near mine exploration targets with the potential to provide ore feed to the Mineral Hill process plant have been identified.
The Company (75%) and Henan Yuguang Gold & Lead Co. Ltd (HYG&L) (25%) own the Sorby Hills silver-lead-zinc deposit in the Kimberley region of Western Australia, which is one of the world’s largest near surface undeveloped lead deposits, close to port infrastructure and a short distance from Asian markets. Sorby Hills was discovered in 1971 and consists of 13 separate but adjacent carbonate hosted, near surface lead-silver-zinc deposits.
Source:
Kimberley Metals Limited
Contact:
Jim Wall
Executive Chairman
Kimberley Metals Limited
Tel: 61-2-9927-2005
http://www.kimberleymetals.com.au