TORONTO, ONTARIO--(Marketwired - March 28, 2014) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Kilo Goldmines Ltd. ("Kilo" or the "Company") (TSX VENTURE:KGL)(FRANKFURT:02K) has been advised by the TSX Venture Exchange that its common shares will commence trading on a 1 for 10 consolidated basis at the opening of trading on Monday, March 31, 2014 under the new CUSIP number 49427Y503. There will be no change in Kilo's trading symbol. The consolidation was approved by shareholders at the Company's annual and special meeting held on March 6, 2014.
Letters of transmittal will be mailed to registered Kilo common shareholders on March 28, 2014 requesting them to deposit their share certificates representing pre-consolidated Kilo common shares with Kilo's transfer agent, TMX Equity Transfer Services, in exchange for share certificates representing the consolidated common shares. No fractional common shares will be issued in connection with the consolidation and any fractional entitlements will be rounded up or down to the next highest or lowest whole number of shares.
As a result of anti-dilution adjustments applicable to the listed warrants of Kilo (TSX VENTURE:KGL.WT) in connection with the consolidation, ten warrants will now be required to acquire one post-consolidated common share at a price of $1.50 per share. The warrants expire on March 20, 2016.
Following the announcement of a proposed private placement offering of equity units on March 25, 2014, Kilo has received a strong positive response and expressions of interests for the entire maximum offering of $6.0 million of units. Closing is expected to occur on or about May 2, 2014 following the special meeting of shareholders that has been called for May 1, 2014 to obtain the required shareholder approvals for the placement. The private placement remains subject to the approval of the TSX Venture Exchange.
Kilo Goldmines Ltd. is a Canadian gold exploration company, listed on the TSX Venture Exchange under the symbol 'KGL' and on the Frankfurt Exchange under the symbol '02K'. Kilo holds exploitation and exploration licences covering some 2700 km2 of favourable Archaen Kabalian Greenstones (the Ngayu belt) in the northeast Democratic Republic of Congo.
Incorporated within these licences is:
- The Somituri Project (71.25% owned by Kilo), comprising eight non-contiguous licences (606 km2) held by KGL-Somituri SARL; and
- The KGL Isiro SARL Joint Venture (JV) with Randgold Resources Ltd. (Randgold) (2056 km2), for gold and associated minerals only. The JV is managed by Randgold and financed by it to a pre-feasibility (PFS) for a 51% participation interest. Upon completion of the PFS, Kilo can participate in funding or Randgold will increase its participation to 65% by completing a Feasibility Study. Areas which may be deemed of no interest to Randgold will be returned to Kilo.
- Kilo has retained the rights to explore for and develop any iron ore or other minerals associated with the licences held by KGL Isiro SARL. These licences were previously in a JV with Rio Tinto who has since withdrawn.
- Kilo has a minority interest in the Hajigak iron ore project in Afghanistan.
This news release may contain forward-looking statements concerning future operations of Kilo Goldmines Ltd. All forward-looking statements concerning Kilo's future plans and operations, including management's assessment, project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond Kilo's control. Investors are cautioned that any such statements are not guarantees of future performance and that actual performance and exploration and financial results may differ materially from any estimates or projections.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.