20 May 2011 11:25
Company CIC Mining Resources Ltd
TIDM CICR
Headline UPDATE Private Placement US$2.5m
Immediate release
FOR: CIC MINING RESOURCES LTD
CNSX SYMBOL: RRR
AIM SYMBOL: CICR
FRANKFURT SYMBOL: 31C
May 20, 2011
CIC Mining Resources Ltd ("CIC Mining Resources" or the "Company"): Update on Private Placement to Raise US$2.5m and on Current Trading
LONDON, UNITED KINGDOM--(Marketwire - May, 20, 2011) - CIC Mining Resources (CNSX:RRR) (AIM:CICR) (FRANKFURT:31C), the consulting and advisory firm operating primarily in the mining energy and infrastructure sectors, provides the following update on the Private Placement (the "Placement") to raise US$2.5 million announced on 19 January 2011 and on current trading.
Private Placement
The Placement was undertaken by a subsidiary of the Company, CIC Precious Metals Group Limited ("CICP") and was duly legally completed, as announced, on 19 January 2011. However, settlement of the placing proceeds has been delayed principally due to the need to establish a new Company bank account in which to receive the funds rather than via the Company's previous trust bank account arrangement. The Company has now opened a bank account with HSBC in Hong Kong.
The Placement subscription agreement also requires full disclosure to the placees of any material matters that may arise during the placement closing. The Company and Stuart Bromley (a director of the Company) have received a claim for CAN$77,359 from Canadian solicitors, Ellison Law, relating to fees outstanding from the AIM admission process in 2010. This claim has been disclosed to the investors in the Placement. The Company is currently seeking legal advice on the claim with the intention of resolving the matter.
The investors in the Placement have confirmed that they are working to ensure all material disclosures have been made and both the Company and investors expect to conclude settlement of the cash proceeds of the Placement shortly. A further announcement will be made without delay once this has occurred.
Capital Position
Separate to the Private Placement as referred to in the Company's Admission Document, the Company facility with Quan Hao of US$11.38 million announced in May 1, 2007 continues to be available to the Company. The Company has partially drawn down in the past on this facility prior to listing on AIM.
As at 31 October 2010, the Companyhadunaudited current assets of CAN $ 85,076 and current liabilities of CAN $1,720,807, including CAN $ 1,008,170 due to related parties (Q3 2010) giving net current liabilities of $1,635,731. As of end of April 2011 the Company's accounting system showed that net current liabilities had increased to approximately $2.4 million (unaudited).
Current Trading
The Company's business is focused on providing advisory and consulting services to client companies and in return receiving a combination of retainer fees and equity interests in client companies, usually in companies that are listed on or admitted to, or which it is hoped will be listed on or admitted to, stock exchanges to gain marketable securities in the future.
The Company recorded retainer revenue in April 2011 of CAD$220,000 and in May 2011 of US$270,000. The retainer revenue is expected to increase for the remainder 2011.
During the course of 2011, the Company also expects to agree equity interests in client companies it is now advising.
FOR FURTHER INFORMATION PLEASE CONTACT:
CIC Mining Resources Ltd
Stuart J. Bromley
+86 136 0113 1912
OR
Canaccord Genuity Limited
Andrew Chubb/ Bhavesh Patel
+44 (0)207 050 6500
OR
GTH Communications
Toby Hall
+44 (0) 20 3103 3903
CIC Mining Resources Ltd
The Company is a consulting and advisory company, operating primarily in the mining and energy infrastructure sectors. The Company seeks to provide consulting and advisory services to entities operating at various stages of resource 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 realize value by listing on a Stock Exchange. www.cicresources.com
Forward-Looking Statements
This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with the Company's business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect management's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risk Factors" in the Company's Admission Document which can be found at the Company's profile on SEDAR www.sedar.com. The Company assumes no obligation to update the forward-looking statements, or to
update the reasons why actual results could differ from those reflected in the forward-looking statements.
Cautionary Statement
Neither CNSX nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
London Stock Exchange plc is not responsible for and does not check content on this release. Readers are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.