VANCOUVER, March 12 /CNW/ - Kimber Resources Inc. (AMEX: KBX, TSX:KBR) is
pleased to report the closing of their previously announced private placement.
The transaction was over-subscribed and consisted of a total of 8,000,000
units at a price of C$0.75 for gross proceeds of C$6,000,000. Each unit
consists of one common share plus one half non-transferable common share
purchase warrant. Each full share purchase warrant entitles the holder to
purchase one common share at C$1.25 for a two year period commencing March 11,
The non-brokered private placement was subscribed to by institutional and
accredited investors in Canada, the United States and offshore. Over 75% of
the placement was taken up by three parties comprised of two North American
investment funds and one large publicly listed mining company. One of the
funds is Sprott Asset Management Inc., an insider of the Company due to the
fact that it controls, directly or indirectly through various funds managed by
it, more than 10% of the issued and outstanding shares of the Company. Sprott
acquired 1,500,000 units and the Company understands that, prior to the
closing of the private placement, it controlled approximately 14% of the
issued and outstanding shares of the Company. In addition, directors Gordon
Cummings (President and CEO of the Company), Peter Nixon, (Chairman of the
Company) and Leanne Baker (Director of the Company) acquired 15,000, 20,000
and 25,000 units, respectively. Participation in the private placement by
insiders of the Company is considered to be a "related party transaction" as
defined under Multilateral Instrument 61-101, however the transaction is
exempt from the formal valuation and minority shareholder approval
requirements under the Instrument as neither the fair market value of the
securities being issued nor the consideration paid exceeds 25 per cent of the
Company's market capitalization.
The net proceeds of the private placement will be used for exploration of
the Company's Monterde and Setago properties in the prolific Sierra Madre
gold-silver belt of Mexico, exploration of the Pericones property in the south
of Mexico, advancement of the Carmen deposit at Monterde and for general
"I am pleased to announce the closing of this C$6 million financing as
well as our plans to commence drilling at Monterde within the next four to six
weeks," said Gordon Cummings, President and CEO of Kimber Resources. "Under
the leadership of Marius Mare, Vice-President, Exploration and our senior
Mexican geologists, our technical team has been making excellent progress in
planning and preparing our initial drill targets. This is an exciting period
for Kimber as we embark on an aggressive exploration campaign at Monterde in
tandem with advancing the Carmen deposit."
A drilling contract has been signed with Major Drilling de Mexico, S.A.
de C.V. This contract is for an initial 12,000 metres of drilling and our
objective is to have two diamond drills in operation at Monterde by April
Marius Mare, Vice-President, Exploration stated, "The Carmen deposit on
the Monterde property will be drilled at depth with an initial diamond drill
program of approximately 7,000 metres designed to drill test the Carmen
structure at depths of 100 metres or more below any previous intersection. An
additional 5,000 metres of drilling at Carmen is contingent on results from
the initial drill program. Two new exploration targets on the Monterde
property, Arimo & Cerro de Mina Breccia (located approximately three
kilometres southwest of the Monterde camp), are to be tested with 3,000 metres
of drilling. These targets are comprised of silicified and variably
mineralized breccia zones defining the boundaries of an andesite unit lower in
the stratigraphy than the rhyolitic host rocks at Carmen. Drilling later in
the year is also planned on the Veta Minitas project, 250 metres west of
An individual third party will receive finder's fees of 7% of the
proceeds raised on certain placements, such fees totaling approximately
C$35,000. No other commissions or finder's fees are payable on the remainder
and majority of this non-brokered placement. The shares are subject to a hold
period under applicable Canadian securities laws and the policies of the
Toronto Stock Exchange (TSX). This hold period expires at midnight on July 11,
2008. Additional resale restrictions apply to shares issued to U.S. investors.
The private placement is subject to final acceptance by the TSX.
Michael Hoole, has resigned as Vice-President and Secretary of Kimber,
but will remain available to provide services to the Company as a consultant.
"I would like to thank Michael Hoole for the very valuable contribution he has
made to our Company as a senior executive over the last 8 years," said Mr.
With the addition of its recently acquired Setago concessions, Kimber
owns mineral concessions covering in excess of 39,000 hectares in the
prospective Sierra Madre gold-silver belt, including the Company's Monterde
property where three gold-silver deposits have already been identified. The
most advanced of these, the Carmen deposit, has been extensively drilled and
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 has
identified a number of new exploration targets. In addition, the Company has a
100% interest in the mineral concessions of its Pericones property, an 11,890
hectare property targeted for silver, located approximately 100 kilometres
southwest of Mexico City.
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.
For further information:
For further information: 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: email@example.com