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Attention Business Editors
BRC DiamondCore provides further update on liquidation proceedings regarding its subsidiary, Diamond Core Resources
TORONTO and JOHANNESBURG, July 3 /CNW/ - BRC DiamondCore Ltd. ("BRC" or
the "Company") (TSX - "BCD"; JSE - "BCD") announces that further to its
earlier press release of today, the Company has been informed that the
liquidation application referred to in that announcement was granted by the
Northern Cape High Court (the "judgment"). The applications to reopen the
application for liquidation and to postpone the application to reopen were
both refused prior to the delivery of the judgment.
The judgment applies to the Company's wholly-owned subsidiary in South
Africa, Diamond Core Resources (Pty) Ltd. ("DCR"). DCR holds the Company's
South African projects and assets.
The Company will be appealing the judgment, initially as the judgment
creditors claim is disputed and secondly in that, as announced, the Company
entered into a heads of agreement with KIG Mining Plc ("KIG") with regard to
the proposed purchase by KIG of BRC's South-African-based alluvial diamond
projects, consisting of the Silverstreams, De Kalk, Muishoek, Sanddrift and
Uitdraal projects, together with the processing plant, mining fleet and
equipment which are associated with these projects and which assets are held
through DCR. The disposal consideration would be sufficient to cover any valid
claims from South African creditors, which the Company has stated its
intention to settle.
The Company regards the South African DCR assets as non-material to the
on-going operations of the Company. The Company regards its core assets as its
exploration properties in the Democratic Republic of the Congo.
Pending the appeal and subsequent due legal process, the Company will
remain in control of DCR.
The ability to complete the asset sale transaction with KIG may be
adversely affected if the Company is unsuccessful in its appeal of the
judgment.
BRC DiamondCore Ltd. is an African-focused diamond explorer active in
South Africa and the Democratic Republic of the Congo. Led by a management
team with extensive experience in diamond exploration and mine development,
the Company has a broad spectrum of projects ranging from advanced stage trial
mining operations through grass-roots exploration. The Company's projects
comprise both prospective alluvial gravels and primary kimberlite targets. The
Company works in a systematic and responsible manner to discover, assess and
develop diamond resources for the benefit of its shareholders and local
stakeholders.
Forward-Looking Information
This press release contains forward-looking information which is not
comprised of historical facts. Forward-looking information involves risks,
uncertainties and other factors that could cause actual events, results,
performance and opportunities to differ materially from those expressed or
implied by such forward-looking information. Forward looking information in
this press release includes, but is not limited to, the completion of the
asset sale transaction with KIG (the "Sale"), the expected effect of the Sale
on the Company's financial position and the expected terms and conditions of
the Sale. Factors that could cause actual results to differ materially from
those described in such forward-looking information include, but are not
limited to, the Company being unsuccessful in its appeal of the judgment in
respect of the liquidation application, failure to complete the Sale in
accordance with all of the terms contemplated by the Agreement, adverse
general market conditions, adverse changes in diamond prices, foreign currency
fluctuations, inflation, political developments in South Africa, changes to
regulations affecting the Company's activities, delays in obtaining or failure
to obtain required project approvals and those other risks set out in the
Company's public documents filed on SEDAR. Although the Company believes that
the assumptions and factors used in preparing the forward-looking information
are reasonable, undue reliance should not be placed on such information, which
only applies as of the date of this press release, and no assurance can be
given that such events will occur. The Company disclaims any intention or
obligation to update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, other than as required
by law.
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/For further information: please visit our website,
www.brc-diamondcore.com, or contact: In Toronto: Martin D. Jones, Vice
President, Corporate Development, (416) 366-2221 or 1-800-714-7938; In
Johannesburg: Brian P. Scallan, Vice President, Finance, +27 11 9582885/
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