Delrand Resources Limited

Delrand Resources Limited

July 02, 2009 20:00 ET

BRC DiamondCore Provides Further Update On Liquidation Proceedings Regarding Its Subsidiary, Diamond Core Resources


Toronto, Canada and Johannesburg, South Africa - July 3, 2009 - BRC DiamondCore Ltd. ("BRC" or the "Company") (TSX - "BCD"; JSE - "BCD") announces that further to its earlier press release of today, the Company has been informed that the liquidation application referred to in that announcement was granted by the Northern Cape High Court (the "judgment"). The applications to reopen the application for liquidation and to postpone the application to reopen were both refused prior to the delivery of the judgment.

The judgment applies to the Company's wholly-owned subsidiary in South Africa, Diamond Core Resources (Pty) Ltd. ("DCR"). DCR holds the Company's South African projects and assets.

The Company will be appealing the judgment, initially as the judgment creditors claim is disputed and secondly in that, as announced, the Company entered into a heads of agreement with KIG Mining Plc ("KIG") with regard to the proposed purchase by KIG of BRC's South-African-based alluvial diamond projects, consisting of the Silverstreams, De Kalk, Muishoek, Sanddrift and Uitdraal projects, together with the processing plant, mining fleet and equipment which are associated with these projects and which assets are held through DCR. The disposal consideration would be sufficient to cover any valid claims from South African creditors, which the Company has stated its intention to settle.

The Company regards the South African DCR assets as non-material to the on-going operations of the Company. The Company regards its core assets as its exploration properties in the Democratic Republic of the Congo.

Pending the appeal and subsequent due legal process, the Company will remain in control of DCR.

The ability to complete the asset sale transaction with KIG may be adversely affected if the Company is unsuccessful in its appeal of the judgment.

BRC DiamondCore Ltd. is an African-focused diamond explorer active in South Africa and the Democratic Republic of the Congo. Led by a management team with extensive experience in diamond exploration and mine development, the Company has a broad spectrum of projects ranging from advanced stage trial mining operations through grass-roots exploration. The Company's projects comprise both prospective alluvial gravels and primary kimberlite targets. The Company works in a systematic and responsible manner to discover, assess and develop diamond resources for the benefit of its shareholders and local stakeholders.

For further information, please visit our website, www.brc-diamondcore.com, or contact:
In Toronto: Martin D. Jones, Vice President, Corporate Development, (416) 366-2221 or 1-800-714-7938.
In Johannesburg: Brian P. Scallan, Vice President, Finance +27 11 9582885.

Forward-Looking Information
This press release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this press release includes, but is not limited to, the completion of the asset sale transaction with KIG (the "Sale"), the expected effect of the Sale on the Company's financial position and the expected terms and conditions of the Sale. Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the Company being unsuccessful in its appeal of the judgment in respect of the liquidation application, failure to complete the Sale in accordance with all of the terms contemplated by the Agreement, adverse general market conditions, adverse changes in diamond prices, foreign currency fluctuations, inflation, political developments in South Africa, changes to regulations affecting the Company's activities, delays in obtaining or failure to obtain required project approvals and those other risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this press release, and no assurance can be given that such events will occur. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.