Banro Enters into $13,000,000 Private Placement with Actis Capital
September 27th, 2005
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Toronto, Canada: Banro Corporation (“Banro” or the “Company”) (AMEX - “BAA”; TSX Venture Exchange - “BAA”) is pleased to announce that it has negotiated a non-brokered private placement of 2,000,000 common shares of the Company (the “Shares”) at a price of Cdn$6.50 per Share for total proceeds to the Company of Cdn$13,000,000. The proceeds will be used to enhance the pace of exploration on the Company’s four wholly-owned gold projects in the Democratic Republic of the Congo (the “DRC”).
The proposed purchaser of the Shares, Actis Capital LLP (“Actis”), is a leading private equity investor in global emerging markets, with significant interests in Africa. It manages approximately US$3.0 billion of funds on behalf of third party investors.
Closing of this financing, which is subject to receipt of regulatory approval, is expected to occur within the next two weeks.
Simon Village, Chairman of Banro, commented, “This investment by Actis provides important strategic benefits to the Company and will enable Banro to increase its current exploration commitment to approximately US$28 million, which will allow the Company to develop its three core projects, Twangiza, Namoya and Lugushwa, to the pre-feasibility stage by year-end 2006. We are especially pleased that Actis recognizes Banro’s commitment to building a highly professional business at all levels, from the technical aspects to support for social development, and that this contributed to its decision to invest in the Company. Actis wishes to participate in some of Banro’s social initiatives, which are being carried out in parallel to the Company’s technical operations and which we believe are paramount to achieving success in the DRC.”
Peter Ruxton, Investment Principal of Actis, said: “Actis is delighted to announce its investment in Banro Corporation through the Actis Africa Fund 2, managed by Actis, and the Canada Investment Fund for Africa, which is managed by Actis and Cordiant. We are very impressed by Banro’s exceptional minerals team and their high quality gold projects in the eastern DRC. We look forward to partnering with the Company, government and community as evaluation and feasibility work on the projects unfolds, and in assisting in the long-term development of the mining industry in the DRC.”
The securities offered 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 any applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
Banro is a Canadian-based gold exploration company focused on the development of four major, wholly-owned gold projects along the 210 kilometre-long Twangiza-Namoya gold belt in the South Kivu and Maniema provinces of the DRC. Led by a proven management team with extensive gold and African experience, Banro’s strategy is to unlock shareholder value by increasing and developing its significant gold assets in a socially and environmentally responsible manner.
Forward-Looking Statements: This press release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate”, “estimate” and other similar words or statements that certain events or conditions “may” or “will” occur, and include, without limitation, statements regarding potential mineralization and resources, exploration results and future plans and objectives of the Company. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Factors that could cause such differences include changes in world gold markets and equity markets, political developments in the DRC, changes to regulations affecting the Company’s activities, uncertainties relating to the availability and costs of financing needed in the future, the uncertainties involved in interpreting drilling results and other ecological data and the other risks involved in the gold exploration and development industry. 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. 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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.
For further information:
Peter Cowley, President and C.E.O.
United Kingdom, Tel: +44 (790) 454-0856
Arnold T. Kondrat, Executive Vice-President
Martin Jones, Vice-President, Corporate Development
Tel: (416) 366-2221