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Market: TSX
Sector: Diamonds & Gemstones
EPIC: BCD
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BRC DiamondCore
www.brc-diamondcore.com

BRC DiamondCore is a growth-focused African diamond explorer and developer with a portfolio of landholdings in proven diamond producing regions of South Africa and in prospective diamond districts of the Democratic Republic of the Congo.

Full BRC DiamondCore profile here
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BRC DiamondCore to sell SAfrican diamond projects to KIG Mining for US$10.7 mln

3rd Jul 2009, 1:01 pm
BRC DiamondCore to sell SAfrican diamond projects to KIG Mining for US$10.7 mln

BRC DiamondCore Ltd (TSX, JSE: BCD) said it entered into a heads of agreement with KIG Mining PLC for the latter’s acquisition of BRC's alluvial diamond projects in South Africa for a total of US$10.7 million.

The assets comprise the Silverstreams, De Kalk, Muishoek, Sanddrift and Uitdraal projects, together with the associated processing plant, mining fleet and equipment.

KIG will pay US$2 million in cash, issue 18 million KIG shares to BRC at US$0.478 each and will pay US$100,000 directly to existing creditors to facilitate the resumption of operations at the Silverstreams project.

KIG intends to resume operations at the Silverstreams project, utilizing staff previously employed at this operation, and a plan for the transition of the project into production will be assisted by BRC over the next two to four weeks. KIG will be responsible for providing the working capital to resume such operations.

BRC is expecting a Kimberley court decision today, July 3 2009, regarding a claim by a former advisor to the company seeking liquidation of Diamond Core Resources (Pty) Ltd which holds all of BRC’s South African projects and assets.

The outcome of the liquidation application may adversely affect the ability to complete the sale of the deal with KIG, the company warned.

Assuming the sale goes ahead, BRC plans to use the money to settle the South African creditors.

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