Johannesburg, South Africa — MININGREVIEW.COM — 11 November 2009 – BRC DiamondCore Limited “’ an African-focused diamond explorer with projects in the Democratic Republic of the Congo (DRC) “’ has entered into agreements with certain of its creditors in terms of which they will accept common shares in payment of outstanding debts.
Announcing this in a statement issued here and in Toronto, the company revealed that the total number of common shares to be issued by the company to the creditors was 43.3 million, and the total amount of company debt to be settled by such share issuances amounted to C$8.6 (R64.5 million). This would represent approximately a 166% dilution to the currently outstanding common shares of the company.
The company also revealed that it proposed to carry out a non-brokered private placement of up to 20 million of its units at a price of Cdn$0.05 per unit to raise up to C$1 million (R7.5 million). It intended to use the proceeds from this financing for working capital and general corporate purposes involving its properties in the DRC,
Closing of the debt Settlements and the financing is expected to occur within the next three weeks.