Kimberley Metals Limited (ASX:KBL) Release Letter to Certain Non Resident Shareholders
Sydney, Aug 3, 2011 AEST (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 KBL Mining Ltd
KBL Mining Ltd (ASX:KBL) is an Australian resource Company listed on the ASX with a focus on producing precious and base metals. KBL's main assets include the Mineral Hill copper-gold-silver-lead-zinc mine near Condobolin in New South Wales and Sorby Hills lead-silver-zinc project in Western Australia. The Company has been operating the refurbished processing plant at Mineral Hill since October 2011 to produce copper-gold concentrates and in 2013 commenced producing a separate lead-silver concentrate. Sorby Hills (KBL holds 75% with Henan Yuguang Gold & Lead Co. Ltd (HYG&L) holding 25%) is a large near surface undeveloped silver-lead deposit close to port infrastructure and a short distance from Asian markets.
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