CIC Mining Resources Ltd.
("CIC" or the "Company")
Working Capital Funding
The Board of CIC is pleased to announce that it has agreed that Balfour Fund (ÒBalfourÓ) will provide the Company with an additional £669,054 of working capital for the Group. Funding is expected to be received by the Group during the current quarter. Balfour has already advanced loans of £170,000 to the Company in August and November 2012. In consideration for the funding, Balfour will be sold for 33,562,170 existing CIC shares (plus an equivalent number of warrants) representing approximately 22 per cent. of the CompanyÕs current issued share capital. The sale equates to a price per CIC share of approximately 2.5 pence. This price was agreed at that date of the initial loans were received in 2012 and equated to the CompanyÕs share price at the time.
As stated in note 17(d) to the audit accounts of the Company for the year ended 31 January 2012, the principle shareholder of Benxi Steel Group (ÒBenxiÓ), Mr Quan Hao, participated in a fundraising in the Company in 2005 in return for which he was issued with 33,562,170 new CIC Common Shares (the ÒHao SharesÓ). Separately, the Company has been providing advisory services to Hao related companies since 2005. The value of these services equates approximately to the value of Hao Shares. Pending payment for those services, the Company has retained security over the Hao Shares. Each share has one warrant at 2.5 pence exercisable 31 July 2014. Mr. Hao has agreed that the Hao Shares be sold for the benefit of CIC to settle the debt owed to CIC by Hao related companies.
The sale of the Hao Shares is a related party transaction, being inter alia a transaction between Mr. Hao who is a substantial shareholder (approximately 22%) in the Company and CIC. The Directors of CIC consider, having consulted with Cairn Financial Advisers LLP, the CompanyÕs Nominated Adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.
CIC Mining Resources Ltd
Tel: +86 136 0113 1912
Cairn Financial Advisers LLP
Tel: +44 (0)207 148 7900
CIC Mining Resources Ltd
The Company is an advisory company, operating primarily in the mining and energy infrastructure sectors. The Company seeks to provide advisory services to entities operating at various stages of development, and the exclusive right to control the public listing process of any client company if the client company is an unlisted company.
Mining and energy infrastructure companies or projects will include those involved in the exploration for, and extraction of, base metals, precious metals, bulk commodities, thermal and metallurgical coals, industrial metals, hydrocarbons, renewables and new technologies, including single-asset as well as diversified natural resources companies.
The core services provided by CIC Mining Resources are: the Advisory Service which provides a range of technical, project management, strategic and commercial services; the Strategic Investment Service which helps companies source investment from industry partners for which the Company will typically receive an equity interest; and Advice on Listings where the Company helps the client realise value by listing on a Stock Exchange. www.cicresources.com