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Kimber Resources Inc. (NYSE AMEX:KBX, TSX:KBR)
("Kimber" or the "Company")
announced today that in connection with its previously announced overnight
marketed public offering, it has entered into an underwriting agreement with
a syndicate of underwriters (the "Underwriters"), whereby
the Underwriters have agreed to purchase 7,900,000 units (the "Units")
at a price of C$1.40 per Unit, each Unit
consisting of one common share of the Company and one-half of one common
share purchase warrant. Each whole warrant (a "Warrant")
will entitle the holder to purchase one common share of the Company for a
period of two years following the closing of the Offering at a price of C$1.80.
The sale of the Units (the "Offering")
is expected to raise gross proceeds of C$11,060,000.
The Company has granted the Underwriters an over-allotment option to purchase
an additional 1,185,000 Units, exercisable at any time up to 48 hours prior
to the closing of the Offering (the "Over-Allotment Option").
If the Over-Allotment Option is exercised in full, the total gross proceeds
to Kimber will be C$12,719,000.
The Company intends to use the net
proceeds of the Offering for exploration and development of the Monterde property, including further drilling and the
completion of a Pre-feasibility study, and for working capital.
The Units will be sold publicly in British Columbia, Alberta
and Ontario pursuant to a short form
prospectus and in other jurisdictions on a private placement basis where
permitted by applicable law. Closing of this Offering is expected to occur
on or about December 23, 2010 and is subject to
receipt of all necessary regulatory approvals, including the approval of the
Toronto Stock Exchange and the NYSE Amex.
The Units, common shares and Warrants
offered have not been registered under the U.S. Securities Act of 1933, as
amended (the "U.S. Securities Act"), or any applicable state
securities laws of the United States and may
not be offered or sold in the United States or
to, or for the account or benefit of "U.S. persons" (as defined in
Regulation S of the U.S. Securities Act) absent such registration or an
applicable exemption from such registration requirements. This press release
shall not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
About Kimber
Kimber owns mineral concessions covering in
excess of 39,000 hectares in the prospective Sierra
Madre gold-silver belt, including the Monterde
property, where three gold-silver mineral resources have already been
defined. The most advanced of these, the Carmen deposit, has been extensively
drilled and has undergone detailed geologic modeling. The recent completion
of the Preliminary Assessment for Monterde
represents a significant step forward for Kimber
and is expected to lead to further development and more advanced economic
studies at the Monterde deposits.
Forward looking statements
Statements in this release may be viewed
as forward-looking statements under United States
and Canadian securities laws, including statements regarding the anticipated
pricing and closing of the Offering, estimates of mineral resources at Monterde, the Preliminary Assessment of the Monterde project, the further development, expected
results and future economic assessments of the Monterde
project. When used in this press release, the words "expect",
"expected", "lead", "intend",
"hopes", "believe", "may", "will",
"if", "anticipates" and similar expressions are intended
to identify forward-looking statements. Such statements involve risks and
uncertainties that could cause actual results to differ materially from those
projected. Such risks and uncertainties include, among others, uncertainty of
pricing and closing of the Offering, mineral reserve and resource estimates,
risks relating to fluctuations in the price of gold, the inherently hazardous
nature of mining-related activities, potential effects on Kimber's
operations of environmental regulations in the countries in which it
operates, risks due to legal proceedings, risks relating to political and
economic instability in certain countries in which it operates, and risks
related to the use of inferred mineral resources in the Preliminary
Assessment, as well as those risk factors discussed under the headings
"Cautionary Note Regarding Forward-Looking Statements" and
"Risk Factors" in Kimber's latest Annual
Report on Form 20-F as filed on SEDAR and EDGAR. There are no
assurances the Company can fulfil such forward-looking
statements and the Company undertakes no obligation to update such
statements, except as required by law. 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.
Cautionary Note to U.S. Investors - The
United States Securities and Exchange Commission permits U.S. mining
companies, in their filings with the SEC, to disclose only those mineral
deposits that a company can economically and legally extract or
produce. Kimber uses certain terms on its
website (and certain press releases), such as "measured,"
"indicated," and "inferred," "resources," which
the SEC guidelines strictly prohibit U.S. companies from including in their
filings with the SEC. U.S. Investors are urged to consider closely the
disclosure under the heading "Cautionary Note to U.S. Investors
Regarding Mineral Reserve and Resource Estimates" in our latest annual
report on Form 20-F which may be secured from us, or from the SEC's website
at http://www.sec.gov/edgar.shtml.
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