CIC Energy Appoints Rothschild's and Announces Changes to Board of Directors

    ROAD TOWN, TORTOLA, British Virgin Islands, Oct. 29 /CNW/ - CIC Energy
Corp. ("CIC Energy" or the "Company") (TSX:ELC, BSE: CIC Energy) is pleased to
announce the appointment of financial advisors for the financing of the
Mmamabula Energy Project, as well as changes to the Company's board of

    Appointment of NM Rothschild and Sons (UK)

    CIC Energy announces the appointment of London-based investment bank
NM Rothschild and Sons Limited as Project Financial Advisors for the planned
debt financing of the Mmamabula Energy Project. NM Rothschild and Sons will be
involved in all aspects of the project finance process, including
participating in term sheet and loan documentation negotiations. Rothschild's
will also coordinate and manage the lender group and the financing process in
order to meet the Mmamabula Energy Project's timelines.
    "Following extensive groundwork by the Company over the last eighteen
months, the financing process for the Mmamabula Energy Project is about to
begin in earnest and the appointment of NM Rothschild and Sons will provide
leadership over the months ahead as we negotiate and finalize terms and
conditions with lenders," said Mr. Greg Kinross, President of CIC Energy.
    The expected lending group includes development finance institutions with
a mandate to fund projects like the Mmamabula Energy Project, which are
compliant with the Equator Principles and have a high socio-economic
development impact in the region. (The Equator Principles are guidelines based
on environmental and social standards of the International Finance
Corporation, the private sector arm of the World Bank Group.)
    It is also anticipated that certain export credit agencies will be
participating in the funding in support of the export of goods and services
from their host countries for the construction of the Mmamabula Energy
Project. A large segment of funding being targeted is from an export credit
agency from the source country of the lead engineering, procurement and
construction contractor that CIC Energy is in an advanced stage of
negotiations with for the Mmamabula Energy Project power station.
    The financing plan is expected to be completed by a tranche of funding
from South African commercial banks, with whom discussions are also ongoing.

    Changes to Board of Directors

    CIC Energy announces that Dr. Reuel Khoza and Dr. Mandla Gantsho have
resigned from the board of directors of the Company due to a conflict of
interest, effective immediately. Both Dr. Khoza and Dr. Gantsho are also
directors of Sasol Limited (and/or a key operating subsidiary of Sasol) and
with the advancement of the Company's Coal-to-Hydrocarbons project it was felt
that this dual directorship could potentially lead to a conflict of interest.
Consequently both directors have decided to resign, and two new directors will
be nominated in due course.
    "We sincerely thank Dr. Khoza and Dr. Gantsho for their contribution to
the board over the last two years of rapid growth as we expanded from a single
project company to three major projects with the potential to fully utilize
our large coal resource at Mmamabula," said Mr. Warren Newfield, Chairman and
CEO of CIC Energy.
    Mr. Warren Newfield, who was Co-Chairman of CIC Energy with Dr. Khoza,
will become Chairman of CIC Energy, effective immediately.

    About CIC Energy Corp.

    CIC Energy is a TSX/BSE-listed company engaged in the advancement of the
Mmamabula Energy Complex at its Mmamabula Coal Field in Botswana, Africa. This
planned Complex consists of the Mmamabula Energy Project, the
Coal-to-Hydrocarbons Project and the Export Coal Project. The Mmamabula Energy
Project is envisaged as a power station and integrated coal mine project,
developed in multiple phases. The first phase of the project includes a 1200
megawatt power station. The Coal-to-Hydrocarbons Project will produce syngas
from coal which can be converted to a variety of downstream products,
including fuels and petrochemicals. The planned Export Coal Project is
actively investigating ways to export A-grade thermal coal from the Mmamabula
Coal Field.
    CIC Energy has a treasury of approximately C$90 million and has
53,466,369 common shares outstanding. For additional information on CIC
Energy, please visit CIC Energy's website at or contact:

    About NM Rothschild and Sons

    NM Rothschild & Sons Limited is part of the Rothschild banking group
which includes investment banking, corporate banking, private banking and
trust, and other businesses including real estate, venture capital and asset
management. The company has offices in more than 30 countries and employs more
than 2,000 people around the world.

    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 and the proposed debt financing thereof.
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: the
ability to raise the required debt or equity financing, including the entering
into of definitive loan agreements with project lenders and export credit
agencies, for the implementation of the contemplated power stations on
favourable terms or at all; inability to enter into power purchase agreements,
transmission agreements or other requisite agreements, including preliminary
and/or definitive fixed price contracts with reputable engineering,
procurement and construction ("EPC") firm(s), agreements to develop one or
more power stations and other agreements required to facilitate the
development, operation and financing of such power stations on favourable
terms or at all; changes in equity markets; capital and operating costs
varying significantly from estimates; failure to complete, or delays in the
completion of, positive bankable feasibility studies on the Company's
projects; delays in the development of the Mmamabula Energy Project caused by
unavailability of equipment, labour or supplies, limited capacity among EPC
firms (and resulting less attractive EPC contract terms being made available),
climatic conditions or otherwise; the grade, quality and recovery of coal
which is mined varying from estimates; delays or failures in obtaining
regulatory permits and/or licences (and extensions and renewals thereof)
respecting mining, power generation and/or power transmission lines;
inflation; changes in exchange rates; changes in anticipated demand for power
in southern Africa; environmental and safety risks, including increased
regulatory burdens; geological and mechanical conditions; the existence of
undetected or unregistered interests or claims, whether in contract or tort,
over the properties of the Company and its subsidiaries; lack of markets for
the Company's coal resources and any products derived therefrom; political
risks arising from operating in Africa; 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.

For further information:

For further information: Erica Belling, VP Investor Relations, Tau
Capital Corp., Tel: (416) 361-9636 ext.243, Email:

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