Johannesburg, South Africa — MININGREVIEW.COM — 17 July 2009 – UK-based private investment group GEM Global Yield Fund Limited has agreed to provide KIG Mining Plc with €10 million (R132 million) over the next three years in the form of an equity line of credit.
Revealing this in a statement issued here and in London, KIG explained that it would control the timing and maximum amount of any draw down under this credit line and was not obliged to draw on the funds on offer.
KIG 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, the plant will be upgraded to use the latest technology in diamond recovery to maximise yield.
The areas acquired by KIG are known and proven to yield high quality diamonds in excess of 50 carats in weight.
KIG entered into a joint venture agreement with South African based Rox Mining (Pty) Limited to manage and run the southern African projects. GEM has expressed an interest in participating in the financing for KIG’s remaining projects.