VANCOUVER, Feb. 8 /PRNewswire-FirstCall/ -- Kimber Resources Inc. (AMEX:KBXAMEX:TSX:KBR) is pleased to announce that it plans to complete a non-brokered private placement of up to 6,666,667 units to raise $5 million, subject to a possible oversubscription of up to an additional $1 million on the same terms. The net proceeds of the private placement will be used for exploration of the Company's Monterde, Pericones and Setago properties, advancement of Carmen and general corporate purposes. In particular the Company is planning to use core drills to drill Carmen at depth, as well as other targets at Monterde.
"The funds raised will allow Kimber to resume drilling at its Monterde gold-silver project in the prolific Sierra Madre gold-silver belt of Mexico," said Gordon Cummings, President & CEO of Kimber Resources. "Evidence from other gold-silver deposits in the Sierra Madre and deeper drill holes completed by Kimber, combined with our improved geologic understanding of the Monterde property, suggests there is excellent potential to extend higher grade mineralization to depth. This could significantly enhance the potential economics of the Monterde project." Placement Details Each unit will be priced at C$0.75 and will consist of one common share plus one half of one non-transferable common share purchase warrant, each whole warrant entitling the holder to purchase one additional common share at a price of C$1.25 per warrant share for a period of 24 months from the date on which the units are issued. A finder's fee in cash and/or common shares of 7% will be paid by the Company on certain subscriptions from subscribers introduced to the Company by an independent third party. These certain subscriptions are expected to comprise less than 15% of the total private placement. Insiders of the Company may participate in the private placement in an aggregate amount not to exceed 10% of the total private placement.
Closing of the private placement is subject to the receipt of applicable regulatory approval, including the approval of the Toronto Stock Exchange and the American Stock Exchange.
The common shares forming part of the units and any warrant shares acquired on the exercise of the warrants will be subject to a four (4) month hold period from the date on which the units are issued. The common shares to be issued pursuant to the private placement are not registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities.
About Kimber Kimber owns mineral concessions covering approximately 32,000 hectares in the prospective Sierra Madre gold-silver belt, including the Company's Monterde property where three gold-silver deposits have already been identified, including the Carmen deposit. The Carmen deposit, which has been extensively drilled, is currently undergoing detailed geologic modeling in order to evaluate the potential for a combined open pit and underground mining operation based on current resources. Further, reconnaissance exploration carried out in 2007 identified a number of new exploration targets. In addition, the Company has a 100% interest in the mineral concession of its Pericones property, a 6300 hectare property targeted for silver, located approximately 100 kilometres southwest of Mexico City.
Cautionary Statement Statements in this release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from those projected. There are no assurances the Company can fulfil such forward-looking statements and the Company undertakes no obligation to update such statements. Such forward-looking statements are only predictions; actual events or results may differ materially as a result of risks facing the Company, some of which are beyond the Company's control.
CONTACT: Matthew Hamilton, Manager of Investor Relations, or Gordon Cummings CA, President and CEO, North America Toll Free: 1-866-824-1100, Tel: (604) 669-2251, Fax: (604) 669-8577; Website: http://www.kimberresources.com/, Email: DATASOURCE: Kimber Resources Inc.
CONTACT: Matthew Hamilton, Manager of Investor Relations, or Gordon Cummings CA, President and CEO, North America Toll Free: 1-866-824-1100, Tel: (604) 669-2251, Fax: (604) 669-8577; Website: http://www.kimberresources.com/, Email:
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