NAMCO Completes Contract With Leviev Group and US$15 Million Placed in Escrow

Apr 02, 2001, 01:00 ET from NAMCO

    LONDON, April 2 /PRNewswire/ --
 Namibian Minerals Corporation (NAMCO) (Nasdaq:   MMCOF) (TSE: NMR; NSE: NMC)
 today announced that it has signed agreements with the Leviev Group of Israel
 for the investment of US$15 million into the Company and for a 15 year
 exclusive marketing contract.
     The Leviev Group placed US$15 million into an escrow account on Friday 30
 March 2001 and the funds shall be made available by agreement, pending
 completion of the transaction.  Terms of the US$15 million investment were
 previously advised in the Company's media release of 26 March 2001.  In
 addition, a US$2.6 million loan facility has been made available to Namco,
 convertible at US$0.33 per share, following the issue of 15.2 million warrants
 to the Leviev Group.  Each warrant would be exercisable over a period of 24
 months to acquire one common share at a price of US$0.33 per share.  The
 Leviev Group will be the new major shareholder in Namco, with an interest of
 39% prior to the exercise of any convertible debentures or warrants.
 Completion of the transaction is subject to shareholder, regulatory and stock
 exchange approval.  A shareholders meeting has been scheduled for Wednesday
 25 April 2001.
     This US$15 million investment from the Leviev Group, combined with the
 US$9.4 private placement of securities announced last week, will enable the
 Company to start the process of discharging several subsidiary companies from
 provisional liquidation.  Namco plans to recommence mining operations as soon
 as possible.
     "We are delighted to have concluded our agreements with the Leviev Group,"
 said Alastair Holberton, Namco's Chairman and CEO.  "They are a world leader
 in diamond polishing and have a real commitment to the long-term growth of the
 Company.  Together we are well-positioned to take the Company forward."
     Namco has 18 000 sq.km. of ocean diamond concessions off the coasts of
 Namibia and South Africa.  The Company has three production vessels and one
 dedicated exploration vessel.  Namco specialises in the development of unique
 proprietary mining and exploration technology, proven to be more efficient and
 productive than traditional systems.  The Company's mining licences are
 located in Namibia and 95% of the Company's production to date is gem quality.
     Given the disruption to production from the accident to one of its mining
 systems earlier in the year and the cessation of mining operations since
 February 2001, the Company is revising its operating plan for the year, which
 will be announced in due course.
     For and on behalf of the Board of Directors of Namibian Minerals
 Corporation
 
     J.A.Holberton
     Chairman & CEO
 
 

SOURCE NAMCO
    LONDON, April 2 /PRNewswire/ --
 Namibian Minerals Corporation (NAMCO) (Nasdaq:   MMCOF) (TSE: NMR; NSE: NMC)
 today announced that it has signed agreements with the Leviev Group of Israel
 for the investment of US$15 million into the Company and for a 15 year
 exclusive marketing contract.
     The Leviev Group placed US$15 million into an escrow account on Friday 30
 March 2001 and the funds shall be made available by agreement, pending
 completion of the transaction.  Terms of the US$15 million investment were
 previously advised in the Company's media release of 26 March 2001.  In
 addition, a US$2.6 million loan facility has been made available to Namco,
 convertible at US$0.33 per share, following the issue of 15.2 million warrants
 to the Leviev Group.  Each warrant would be exercisable over a period of 24
 months to acquire one common share at a price of US$0.33 per share.  The
 Leviev Group will be the new major shareholder in Namco, with an interest of
 39% prior to the exercise of any convertible debentures or warrants.
 Completion of the transaction is subject to shareholder, regulatory and stock
 exchange approval.  A shareholders meeting has been scheduled for Wednesday
 25 April 2001.
     This US$15 million investment from the Leviev Group, combined with the
 US$9.4 private placement of securities announced last week, will enable the
 Company to start the process of discharging several subsidiary companies from
 provisional liquidation.  Namco plans to recommence mining operations as soon
 as possible.
     "We are delighted to have concluded our agreements with the Leviev Group,"
 said Alastair Holberton, Namco's Chairman and CEO.  "They are a world leader
 in diamond polishing and have a real commitment to the long-term growth of the
 Company.  Together we are well-positioned to take the Company forward."
     Namco has 18 000 sq.km. of ocean diamond concessions off the coasts of
 Namibia and South Africa.  The Company has three production vessels and one
 dedicated exploration vessel.  Namco specialises in the development of unique
 proprietary mining and exploration technology, proven to be more efficient and
 productive than traditional systems.  The Company's mining licences are
 located in Namibia and 95% of the Company's production to date is gem quality.
     Given the disruption to production from the accident to one of its mining
 systems earlier in the year and the cessation of mining operations since
 February 2001, the Company is revising its operating plan for the year, which
 will be announced in due course.
     For and on behalf of the Board of Directors of Namibian Minerals
 Corporation
 
     J.A.Holberton
     Chairman & CEO
 
 SOURCE  NAMCO