IFC enters into binding agreement with Tsodilo Resources Limited to purchase common shares and warrants of Tsodilo by private placement

31 Aug, 2012, 13:36 ET from IFC

WASHINGTON, Aug. 31, 2012 /CNW/ - IFC, a member of the World Bank Group, entered into a binding agreement with Tsodilo Resources Limited ("Tsodilo") to purchase 1,818,181 units at a price of CAD$1.10 per unit to be issued by Tsodilo by private placement (the "Private Placement"). Each unit is composed of one Tsodilo common share and one warrant to purchase a Tsodilo common share at an exercise price of US$1.21. Each warrant is exercisable until June 29, 2015. IFC previously acquired 2,702,202 Tsodilo common shares and 2,702,702 warrants to purchase Tsodilo common shares in a private placement which closed in June 2010. Each warrant acquired under the June 2010 private placement entitles IFC to acquire one Tsodilo common share at an exercise price of CAD$2.17 for a period of five years from the closing of the June 2010 private placement.

Upon completion of the Private Placement, there will be 28,049,151 outstanding Tsodilo common shares. Pursuant to the Private Placement, IFC will acquire beneficial ownership of approximately 6.50% of the outstanding common shares. Immediately upon the closing of the Private Placement, it is expected that IFC will directly hold approximately 16.12% of Tsodilo's outstanding common shares and approximately 27.76% percent of the outstanding common shares assuming the exercise of all of the warrants held by IFC.

The Private Placement is expected to close by the end of September 2012.

IFC is acquiring the common shares and warrants for investment purposes. IFC may, in the future, take such actions in respect of its holdings as IFC deems appropriate in light of the circumstances then existing.

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. IFC helps developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, IFC investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world's most pressing development challenges. For more information, visit www.ifc.org. International Finance Corporation, 2121 Pennsylvania Avenue N.W., Washington D.C. 20433

IFC is an international organization established by Articles of Agreement among its member countries, including Canada, and as such, enjoys certain immunities, privileges and exemptions, including the freedom of all of its property and assets from restrictions, regulations, controls and moratoria of any nature. The voluntary provision by IFC of the information in this press release does not in any way constitute or imply a waiver, termination or modification by IFC of any privilege, immunity or exemption of IFC granted in the Articles of Agreement establishing IFC, international conventions, or applicable law.