Namibian Minerals has signed agreements with the Leviev Group of Israel for the investment of $15-million (U.S.) into the company and for a 15-year exclusive marketing contract.
The Leviev Group placed $15-million (U.S.) into an escrow account on Friday, March 30, 2001, and the finances shall be made available by agreement, pending completion of the transaction. Terms of the $15-million (U.S.) investment were previously advised in the company’s media release of March 26, 2001. In addition, a $2.6-million (U.S.) loan facility has been made available to Namco, convertible at 33 U.S. cents per share, following the issue of 15.2 million warrants to the Leviev Group. Each warrant would be exercisable over a period of 24 months to acquire one common share at a price of 33 U.S. cents per share. The Leviev Group will be the new major shareholder in Namco, with an interest of 39 per cent prior to the exercise of any convertible debentures or warrants. Completion of the transaction is subject to shareholder, regulatory and stock exchange approval. A shareholders meeting has been scheduled for Wednesday, April 25, 2001.
This $15-million (U.S.) investment from the Leviev Group, combined with the $9.4-million (U.S.) private placement of securities announced last week, will enable the company to start the process of discharging several subsidiary companies from provisional liquidation. Namco plans to recommence mining operations as soon as possible.
“We are delighted to have concluded our agreements with the Leviev Group,” said Alastair Holberton, Namco’s chairman and chief executive officer. “They are a world leader in diamond polishing and have a real commitment to the long-term growth of the company. Together we are well positioned to take the company forward.”
Namco has 18,000 square kilometres of ocean diamond concessions off the coasts of Namibia and South Africa. The company has three production vessels and one dedicated exploration vessel. Namco specializes in the development of unique proprietary mining and exploration technology, proven to be more efficient and productive than traditional systems. The company’s mining licences are located in Namibia and 95 per cent of the company’s production to date is gem quality.
Given the disruption to production from the accident to one of its mining systems earlier in the year and the cessation of mining operations since February, 2001, the company is revising its operating plan for the year, which will be announced in due course.
