CIC Mining Resources Ltd

CIC Mining Resources Ltd

December 13, 2010 02:00 ET

Arctic Star Agreement in Relation to Global Diamond Resources Plc

LONDON, UNITED KINGDOM--(Marketwire - Dec. 13, 2010) - CIC Mining Resources (CNSX:RRR)(AIM:CICR)(FSE:31C), the consulting and advisory firm operating primarily in the mining and energy infrastructure sectors, is pleased to announce that it has entered into an agreement (the "Agreement") with Arctic Star Diamond Corp. ("Arctic"), a Canadian diamond mining company listed on the TSX to provide various services with respect to Global Diamond Resources Plc (In administration) ("Global").

Under the terms of the Agreement, CIC Mining Resources has been appointed to purchase, on Arctic's behalf, various assets including the goodwill, the business name, records/exploration data and website of Global from Global's administrators, Grant Thornton UK LLP (the "Administrators"), in the form of an asset purchase agreement (the "Asset Agreement"). In addition, CIC Mining Resources undertook to seek an agreement with the Administrators that provides for an investigation into whether there is a case for the recovery of any loss or any other asset of Global in relation to potentially inappropriate disposals of assets connected with, or within the statutory time limits of, the administration of Global (the "Administration Agreement"). The Administration Agreement allows CIC Mining Resources to act, in conjunction with the Administrators and their advisers, to seek to restore assets to Global which may have been inappropriately disposed of by Global or its management in breach of agreements or insolvency legislation. Pursuant to the Administration Agreement, the Company has agreed to fund these investigations in return for a proportion of any damages attained or assets recovered. Both the Asset Agreement and Administration Agreement have been signed with the Administrator by CIRL (defined below).

In consideration for CIC Mining Resources' services under the agreement, in addition to the Company's expenses, Arctic has agreed to pay the Company:

(i) £1.2 million in shares of Arctic in a series payable on signing of the Agreement for services rendered; and

(ii) conditional upon any successful recovery of assets to the Administrators and any subsequent sale to Arctic, Arctic has agreed to provide the Company with shares in Arctic to the value of 20% of the total uplift in value of the market capitalisation of Arctic as a result of the successful performance by CIC Mining Resources of its obligations under the Agreement. 

To progress the actions, CIC Mining Resources has contracted CIC Resources Limited, ("CIRL") a private company owned by CIC's Mining Resources Chairman and CEO, Stuart Bromley. CIRL is the party to the Asset Agreement and the Litigation Funding Agreement. All monies and assets reclaimed by CIC Resources will be directly passed onto CIC Mining Resources, the Administrator and relevant third parties. There will be no direct liabilities to CIC Mining Resources as a result of the agreement with CIRL.

CIC Mining will additionally provide technical, legal, strategic, diplomatic and commercial advice to its client in relation to the Agreement, as well as aide in the selection of other suitable third party advisers where needed.

Stuart Bromley, Chairman & CEO of CIC Mining Resources, commented:

"I am delighted by the rapid progress we are making on behalf of our client and the Administrator in these matters. We believe we have structured the transaction in a way which ring-fences CIC Mining Resources interests and those of our client."

CIC Mining Resources Ltd

The Company is a consulting and advisory company, operating primarily in the mining and energy infrastructure sectors. The Company seeks to provide consulting and advisory services to entities operating at various stages of resource development, and the exclusive right to control the public listing process of any client company if the client company is an unlisted company.

Mining and energy infrastructure companies or projects will include those involved in the exploration for, and extraction of, base metals, precious metals, bulk commodities, thermal and metallurgical coals, industrial metals, hydrocarbons, renewables and new technologies, including single-asset as well as diversified natural resources companies.

The core services provided by CIC Mining Resources are: the Advisory Service which provides a range of technical, project management, strategic and commercial services; the Strategic Investment Service which helps companies source investment from industry partners for which the Company will typically receive an equity interest; and Advice on Listings where the Company helps the client realise value by listing on a Stock Exchange.

Forward-Looking Statements

This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with the Company's business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect management's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risk Factors" in the Company's Admission Document which can be found at the Company's profile on SEDAR The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

Neither CNSX nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contact Information

  • CIC Mining Resources Ltd
    Stuart J. Bromley
    +86 136 0113 1912
    Canaccord Genuity Limited
    Andrew Chubb/ Bhavesh Patel
    +44 (0)207 050 6500
    GTH Communications
    Toby Hall
    +44 (0) 20 3103 3903