UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 or
15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of October 2014
Commission File Number 001-32399
BANRO CORPORATION
(Translation of
registrants name into English)
1 First Canadian Place
100 King Street West, Suite
7070
Toronto, Ontario, Canada
M5X 1E3
(Address of
principal executive offices)
Indicate by check mark whether the registrant files or will
file annual reports under cover Form 20-F or Form 40-F
Form 20-F [ ] |
Form 40-F [ X ] |
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]
Note: Regulation S-T Rule 101(b)(1) only permits the
submission in paper of a Form 6-K if submitted solely to provide an attached
annual report to security holders.
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]
Note: Regulation S-T Rule 101(b)(7) only permits the
submission in paper of a Form 6-K if submitted to furnish a report or other
document that the registrant foreign private issuer must furnish and make public
under the laws of the jurisdiction in which the registrant is incorporated,
domiciled or legally organized (the registrants home country), or under the
rules of the home country exchange on which the registrants securities are
traded, as long as the report or other document is not a press release, is not
required to be and has not been distributed to the registrants security
holders, and, if discussing a material event, has already been the subject of a
Form 6-K submission or other Commission filing on EDGAR.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
|
BANRO CORPORATION |
|
|
|
/s/ Kevin Jennings |
Date: October 16, 2014 |
Kevin Jennings |
|
Chief Financial Officer |
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INDEX TO EXHIBITS
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Banro and Gold Holding Advance toward Definitive
Agreements
for Banros US$121 Million Financing
Toronto, Canada October 15, 2014 Banro Corporation
("Banro") (NYSE MKT - "BAA"; TSX - "BAA") is pleased to announce that, pursuant
to the memorandum of understanding announced by Banro on August 18, 2014, it is
progressing towards finalizing the definitive agreements with Gold Holding Ltd.
(Gold Holding) for the two gold sale transactions to raise US$121 million in
financing for Banro, the first such transaction for US$41 million relating to
the Twangiza mine and the second transaction for US$80 million relating to the
Namoya mine. Banro and Gold Holding expect to sign the definitive agreement
related to the Twangiza transaction in one week to 10 business days and to close
this transaction within a month.
Banro and Gold Holding also expect the Namoya transaction to
close by mid-December 2014, subject to finalizing the definitive agreements.
Please refer to Banros August 18, 2014 press release for additional details
with respect to both transactions.
Gold Holding is a private investment holding company based in
the Dubai International Financial Centre. Gold Holding is an integrated business
involved in mining through financing activities including streams, royalties and
other gold purchase transactions, along with refining and minting activities
through strategic alliances and facilities, as well as trading through its
subsidiary Gold AE which also handles trading and distribution of its products.
Gold Holding currently has investments in the Gulf region, Turkey, Egypt and
South America. Gold Holdings web site is located at www.goldholding.com. Gold
Holding also plans to issue a gold Islamic bond (Sukuk) in the very near
future.
We are very pleased to announce this strategic long term
arrangement with an organization with the capabilities of Gold Holding, which is
based in Dubai, one of the largest physical gold market trading zones in the
world, commented Banro Board Chairman Richard Brissenden. The relationship we
have developed with Gold Holding not only addresses Banros financial
requirements for its existing operations pursuant to the current transactions,
but also provides future project development opportunities at Banros
properties.
The Twangiza transaction contemplates the prepayment by Gold
Holding of US$41 million for its purchase of 40,000 ounces of gold from the
Twangiza mine, with the gold deliverable over four years, at 10,000 ounces per
year.
The Namoya transaction contemplates a gold stream transaction
involving the payment by Gold Holding of a deposit in the amount of US$80
million and the delivery to Gold Holding over time of 10% of the life-of-mine
gold production from the Namoya mine (or any other projects located within 20
kilometres from the current Namoya gold mine if the gold is processed at the
current Namoya processing facility).
The amount of gold under the Namoya transaction is subject to a
maximum of 12,000 ounces per year. The ongoing payments to Namoya upon delivery
of the gold are US$300 per ounce increasing to US$350 per ounce after delivery
of the first 200,000 ounces.
Banro Corporation is a Canadian gold mining
company focused on production from the Twangiza mine, which began commercial
production September 1, 2012, and completion of its second gold mine at Namoya
located approximately 200 kilometres south of the Twangiza gold mine. The
Companys longer term objectives include the development of two additional
major, wholly-owned gold projects, Lugushwa and Kamituga. The four projects,
each of which has a mining license, are located along the 210 kilometre long
Twangiza-Namoya gold belt in the South Kivu and Maniema provinces of the
Democratic Republic of the Congo. Led by a management team with extensive gold
and African experience, the initial focus of the Company is on the mining of
oxide material, which has a low capital intensity to develop but also attracts a
lower technical and financial risk to the Company. All business activities are
followed in a socially and environmentally responsible manner.
Cautionary Note Concerning Forward-Looking Statements
This press release contains 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 (including, without limitation, statements regarding the
closing of the Twangiza and Namoya gold sale transactions with Gold Holding (the
Gold Sale Transactions), future gold production and the anticipated effect of
the Gold Sale Transactions on the Companys operations and financial condition)
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. Forward-looking statements are subject to a number of
risks and uncertainties that may cause the actual results of the Company 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, among other things: failure to enter into
definitive documentation in respect of, or complete, either of the Gold Sale
Transactions; the need to satisfy legal requirements and other conditions to
closing with respect to the Gold Sale Transactions; the fact that Gold Holdings
commitment is non-binding and that Gold Holdings continued cooperation will be
necessary to complete the Gold Sale Transactions; the possibility that the
completion of the Gold Sale Transactions may be delayed, or that the amount or
terms of the Gold Sale Transactions may be renegotiated; uncertainty of
estimates of capital and operating costs, production estimates and estimated
economic return of the Companys projects; the possibility that actual
circumstances will differ from the estimates and assumptions used in the
economic studies of the Companys projects; failure to establish estimated
mineral resources and mineral reserves (the Companys mineral resource and
mineral reserve figures are estimates and no assurance can be given that the
intended levels of gold will be produced); fluctuations in gold prices and
currency exchange rates; inflation; gold recoveries being less than those
indicated by the metallurgical testwork carried out to date (there can be no
assurance that gold recoveries in small scale laboratory tests will be
duplicated in large tests under on-site conditions or during production);
uncertainties relating to the availability and costs of financing needed in the
future; changes in equity markets; political developments in the Democratic
Republic of the Congo; lack of infrastructure; failure to procure or maintain,
or delays in procuring or maintaining, permits and approvals; lack of
availability at a reasonable cost or at all, of plants, equipment or labour; the
possibility of accidents, equipment breakdowns or other events resulting in
interruptions in production; inability to attract and retain key management and
personnel; changes to regulations affecting the Company's activities; the
uncertainties involved in interpreting drilling results and other geological
data; and the other risks disclosed under the heading "Risk Factors" and
elsewhere in the Company's annual information form dated March 29, 2014 filed on
SEDAR at www.sedar.com and EDGAR at www.sec.gov. 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.
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For further information, please visit the Banro website at
www.banro.com, or contact:
Naomi Nemeth,
Banro Investor Relations, +1 (416) 366-9189, +1-800-714-7938, Ext. 2802,
IR@banro.com, and follow Banro on Twitter
@banrocorp.
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