[miningmx.com] — KIWARA, the mining exploration and development company focused on nickel-cobalt copper and uranium, on Wednesday reported a widening of its diluted headline loss from £0.09 to £0.55 a share for the six months to end September 2009.
The pre-tax loss for the six months was £999,138 compared to a pre-tax loss of £172,483 for the same period a year ago.
During the period under review, Kiwara increased its interest in Kalumbila Minerals, the joint venture company by 5% for a consideration of £1m plus 800,000 Kiwara ordinary shares of 1p each.
This additional interest increases Kiwara’s holding in Kalumbila to 85% effective from late September 2009.
In August 2009, the International Finance Corporation (IFC) committed to an equity investment of $15m in the company.
The initial $6m was executed through its investment in 19,510,403 million Kiwara ordinary shares of 1p each at a price of 18.97 pence per share.
As part of the $6m initial investment, the IFC was granted the right to invest a further $9m at a price of 37 pence per share for a period of three years from the date of the initial investment.
“This investment by the IFC provides the company with a highly credible strategic investor necessary for the progression of the company’s rapidly emerging projects in an environmentally and socially sustainable manner,” Kiwara said.
Post the reporting period, Kiwara received and the directors unanimously supported an offer from First Quantum Minerals to purchase the entire share capital of Kiwara for about £157.6m by way of a cash and equity transaction.
The terms of the First Quantum offer consist of a cash payment of 37.5 pence plus 0.0085 First Quantum share per Kiwara ordinary share.
It is currently estimated that the transaction will complete in early February 2010.
