CIC Energy Announces CDN$65 Million Financing



    /THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
    AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    TSX:ELC
    BSE:CIC ENERGY

    ROAD TOWN, TORTOLA, British Virgin Islands, Aug. 8 /CNW/ - CIC Energy
Corp. ("CIC Energy" or the "Company") (TSX:ELC, BSE: CIC Energy) is pleased to
announce that it has entered into an agreement with a syndicate of
underwriters led by Westwind Partners Inc. (the "Underwriters") which have
agreed to purchase, on a bought deal private placement basis, 3,100,000 common
shares of the Company at a price of CDN$16.25 per share, for aggregate gross
proceeds of CDN$50,375,000 (the "Offering"). The Underwriters will have the
option to purchase up to an additional 1,500,000 common shares at a price of
CDN$16.25 for a period of up to 48 hours prior to closing for additional gross
proceeds of up to CDN$24,375,000.
    The Offering is scheduled to close on or about August 23, 2007 and is
subject to certain conditions including, but not limited to, the receipt of
all necessary approvals including the approval of the Toronto Stock Exchange.
    Furthermore, the Company announces the closing of a CDN$14,999,985
non-brokered private placement of 923,076 shares at CDN$16.25 per share with
an arm's length investor.
    Proceeds from the financings will be used for the payments that will be
required before Financial Close for engineering, procurement and construction
("EPC") contracts and the development of the Mmamabula Energy Project.

    This news 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 State in which such offer, solicitation or sale would be unlawful. The
securities have not been registered under the United States Securities Act of
1933, as amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements.

    About CIC Energy Corp.

    CIC Energy is a TSX/BSE-listed company engaged in the advancement of the
Mmamabula Energy Project, a planned power station and integrated coal mine in
Botswana. This Project is in partnership with International Power plc (LSE
listed), a leading independent electricity generating company. The Southern
Africa region is projected to require significant new baseload power
generation capacity over the next several years. The Project includes the
Mmamabula East and Mmamabula South prospecting licenses, located in the
Mmamabula coal fields of southeastern Botswana, 120 kilometres north of the
capital city of Gaborone and adjacent to South Africa's Waterberg Coal Fields.
Phase One of the Project is planned as a 2,100 to 2,460 MW power plant with an
integrated 7.5 to 9.0 Mt per annum coal mine expected to be in commercial
operation in 2012.
    CIC Energy has a treasury of approximately CDN$48 million and has
48,224,359 shares outstanding and 54,363,609 shares fully diluted as of the
date of this news release. Please note that these figures do not include the
effect of the offerings discussed above.

    Forward-Looking Statements
    This news release contains certain "forward-looking statements". All
statements, other than statements of historical fact that address activities,
events or developments that the Company believes, expects or anticipates will
or may occur in the future are forward-looking statements. These
forward-looking statements reflect the current expectations or beliefs of the
Company based on information currently available to the Company. Such
forward-looking statements include, among other things, statements relating to
the Mmamabula Energy Project with respect to estimates and/or assumptions in
respect of mineral resources, mineral resource qualities, targets, future
production, goals, objectives, plans and future economic, market and other
conditions. Forward-looking statements are subject to significant risks and
uncertainties and other factors that could cause the actual results to differ
materially from those discussed in the forward-looking statements, and even if
such actual results are realized or substantially realized, there can be no
assurance that they will have the expected consequences to, or effects on the
Company. Factors that could cause actual results or events to differ
materially from current expectations include, but are not limited to: failure
to complete a positive bankable feasibility study on the Project; the grade,
quality and recovery of coal which is mined varying from estimates; inflation;
changes in exchange rates; the ability to raise the required debt financing
for the Project; Rand liquidity and constraints under applicable South African
law and/or practice on the amount that a single lender is able to lend to a
single borrower; delays in the development of the Project caused by
unavailability of equipment, labour or supplies, limited capacity among
engineering, procurement and construction firms, climatic conditions or
otherwise; insufficient transportation and transmission capacity, geological
and mechanical conditions; delays or failures in obtaining regulatory permits
and/or licences respecting mining, power generation and/or power transmission
lines; the existence of undetected or unregistered interests or claims,
whether in contract or tort, over the properties of the Company; availability
of water and sorbent (at cost effective prices); inability to enter into power
purchase agreements and/or transmission agreements with Eskom Holdings Limited
and (to a lesser extent) Botswana Power Corporation or other requisite
agreements, including fixed price contracts with reputable engineering,
procurement and construction firm(s) and other agreements required to
facilitate the development, operation and financing of the Project, including
with International Power plc; failure to raise additional funds on favourable
terms to finance such development; inability to obtain tax concessions from
the Government of Botswana and requisite credit support from the Government of
South Africa and/or the Government of Botswana; political risks arising from
operating in Africa; lack of markets for coal resources, if any, which may
exceed the projected coal consumption of the Phase One and Phase Two power
plants of the Project; or other factors (including development and operating
risks). Any forward-looking statement speaks only as of the date on which it
is made and, except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or results or
otherwise. Although the Company believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking statements are not
guarantees of future performance and accordingly undue reliance should not be
put on such statements due to the inherent uncertainty therein.
    No assurances can be given that the levels of coal indicated by the
current mineral resource estimates for the Project will be produced. Such
estimates are expressions of judgment based on knowledge, mining experience,
analysis of drilling results and industry practices. Valid estimates made at a
given time may significantly change when new information becomes available.
While the Company believes that the current mineral resource estimates for the
Project are well established, by their nature resource estimates are imprecise
and depend, to a certain extent, upon statistical inferences which may
ultimately prove unreliable. If such estimates are inaccurate or are reduced
in the future, this could have a material adverse impact on the Company.
    Mineral resources are not mineral reserves and do not have demonstrated
economic viability. There is no certainty that mineral resources can be
upgraded to mineral reserves through continued exploration.

    %SEDAR: 00023467E




For further information:

For further information: on the Company and Mmamabula, please visit CIC
Energy's website at www.cicenergycorp.com or contact: Erica Belling, VP
Investor Relations, Tau Capital Corp., Tel: (416) 361-9636 ext. 243, Email:
ebelling@taucapital.com

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CIC Energy Corp.

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