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 January, 2015
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
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Form 20-F [
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Form 40-F [X] |
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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.
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BANRO CORPORATION |
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/s/ Kevin
Jennings
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Date: January 15, 2015 |
Kevin Jennings |
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Chief Financial Officer
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INDEX TO EXHIBITS
Exhibit 99.1
FORM 51-102F3 - MATERIAL CHANGE REPORT
1. |
Name and Address of Company |
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Banro Corporation |
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1 First Canadian Place |
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Suite 7070, 100 King Street West |
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Toronto, Ontario |
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M5X 1E3 |
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2. |
Date of Material Change |
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January 5, 2015. |
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3. |
News Release |
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The news release (the "News Release") attached
hereto as Schedule "A" was issued through Marketwired on January 5, 2015.
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4. |
Summary of Material Change |
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See the attached News Release, which News Release is
incorporated herein. |
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5. |
Full Description of Material Change |
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5.1 |
Full Description of Material Change |
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See the attached News Release, which News Release is
incorporated herein. |
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5.2 |
Disclosure for Restructuring Transactions
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Not applicable. |
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6. |
Reliance on subsection 7.1(2) of National Instrument
51-102 |
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Not applicable. |
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7. |
Omitted Information |
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Not applicable. |
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8. |
Executive Officer |
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Kevin Jennings (Senior Vice President and Chief Financial
Officer) - (416) 366-2221. |
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9. |
Date of Report |
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January 15, 2015. |
Schedule "A"
Banro Provides Q4 2014 Gold Production and Brief
Operations & Corporate Update
- Banro achieves record gold production from its two mines of 38,236 ounces
in Q4 2014
- Twangiza reports second consecutive record quarterly gold
production of 29,445 ounces and annual production of 98,184 ounces, an increase
of 19% over 2013 production of 82,591 ounces
- Namoya achieves production of
8,791 ounces of gold in Q4, up from the previous quarter of 4,671 ounces or an
88% increase
- Namoya agglomeration drum currently en route to mine site to
allow Namoya to progress to steady state production
Toronto, Canada January 5, 2015 Banro Corporation
("Banro" or the Company) (NYSE MKT - "BAA"; TSX - "BAA") is pleased to report
its best quarterly gold production since the Company began producing gold.
Twangiza poured 8,071 ounces in October, 9,825 ounces in November and 11,549
ounces in December for a fourth quarter 2014 total of 29,445 ounces of gold.
Namoya poured 1,749 ounces in October, 3,042 ounces in November and 4,000 ounces
in December for a fourth quarter 2014 total of 8,791 ounces of gold. Together,
Twangiza and Namoya produced 38,236 ounces of gold during Q4 2014.
Throughout 2014, the management teams at Twangiza and Namoya
focused on operational and cost efficiencies. In particular, significant steps
were taken to ensure that operations were less hindered during the frequent
periods of adverse weather conditions at each site. As a result of the
operational efficiency drive, Twangiza production has grown significantly
throughout 2014 and strong quarterly production improvement has been experienced
at Namoya. The production growth of the two operations, during Q4 2014 in
particular, provides a strong foundation for meeting steady state production at
Twangiza and Namoya.
The Companys preliminary 2014 fourth quarter production
results for the Twangiza mine, in comparison to the same quarter of 2013 and the
previous quarter in 2014, are as follows:
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Units
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Q4 2014 |
Q4 2013 |
Q3 2014 |
Full Year 2014 |
Full Year 2013
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Total ore mined |
Tonnes |
556,856 |
366,625 |
589,288 |
1,927,744 |
1,758,972 |
Total ore milled |
Tonnes |
370,881 |
282,831 |
394,500 |
1,358,726 |
1,023,981 |
Head grade |
g/t Au |
3.01 |
3.15 |
2.60 |
2.70 |
2.98 |
Recovery |
% |
81.4 |
84.4 |
82.2 |
83.0 |
83.8 |
Strip ratio |
t:t |
0.74 |
1.69 |
0.74 |
0.84 |
1.35 |
Gold production |
Ounces |
29,445 |
22,858 |
27,171 |
98,184 |
82,591 |
Average gold price received |
US$/ounce |
1,206 |
1,267 |
1,233 |
1,240 |
1,390 |
A-2
Namoya Update
Banro is also pleased to report
that it has purchased the agglomeration drum required for the Namoya processing
plant enhancement. In order to fast track the time to deliver a drum assembly to
site at Namoya, a drum assembly was procured which had been in operation for a
few months. The procurement and shipping of a new drum for Namoya could have
taken in excess of 12 months.
The drum, its support structure and spare components were
shipped by Banro as air cargo to Entebbe in Uganda over the December 2014
holiday period. A road truck convoy is currently en route to Namoya and is
scheduled to arrive mid-January 2015. Other equipment necessary for the
operation of the drum is scheduled to arrive at site during January 2015. Site
civil work for the installation of the drum, its feed conveyors and other
ancillary equipment commenced in November and commissioning completion is
scheduled for mid-February 2015.
The inclusion of the agglomeration stage (with cement added
as a binder) into the Namoya heap leach circuit is expected to allow for more
efficient processing of the fines content of the Namoya ore and ensure more
efficient reagent percolation in the heap process, leading to better gold
recovery, commented Banro CEO and President John Clarke.
With installation of the drum scheduled for completion during
Q1 2015, it is anticipated that the gold production profile for the Namoya
operations will be raised incrementally from its current level of approximately
4,000 ounces per month achieved during December 2014 to a monthly rate of up to
6,000 ounces per month by the end of Q1 2015. With heap leach operations taking
several months of continuous percolation to fully recover the leachable gold,
the full benefits of the improvements to the heap leach circuit are expected to
build up during Q2 2015 to a monthly gold production rate of up to 8,000 ounces
per month by mid-year 2015.
Corporate Update
Banro also wishes to provide
an update on the previously announced gold sale transaction with Gold Holding
Ltd. (Gold Holding) related to the Twangiza mine (reference is made to Banros
November 4, 2014, October 15, 2014 and August 18, 2014 press releases). This
transaction contemplates the prepayment by Gold Holding to Banro of US$41
million for its purchase of 40,500 ounces of gold from the Twangiza mine, with
the gold deliverable over four years, at 10,125 ounces per year.
The closing of the transaction with respect to the Twangiza
gold sale has been delayed due to ongoing internal issues relating to Gold
Holding, but we continue to work with them toward closing, although in a more
extended timeline than what was originally contemplated, commented Banro Board
Chairman Richard Brissenden. We expect that this transaction, or alternatives
to address our liquidity situation, will be finalized in the near term.
As a result of the delay in closing the Gold Holding
transaction and its effect on Banro's liquidity situation, Banro is progressing
alternatives and careful cash management. These alternatives include discussing
forward gold sale and gold streaming transactions with other potential
investors, as well as ongoing discussions with its major trade payable suppliers
to settle up to approximately US$16 million in accounts payable by way of
forward gold sale arrangements. Further details will be provided once these
discussions have been finalized.
A-3
As part of the Companys cash management, Banro and its
subsidiary, Banro Group (Barbados) Limited, have elected to accrue the fourth
quarter 2014 dividends on, respectively, the Series A Preference Shares of Banro
and the Preferred Shares of Banro Group (Barbados) Limited.
Qualified Person
Daniel K. Bansah, Head of Projects
and Operations for the Company and a "qualified person" (as such term is defined
in National Instrument 43-101), has reviewed and approved the technical
information in this press release.
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
future gold production (including the timing thereof), the timing of
commissioning completion of the agglomeration drum at Namoya, the closing of the
Twangiza gold sale transaction with Gold Holding, potential gold sale
transactions with other investors, potential transactions with major trade
payable suppliers, the anticipated effect of the said Gold Holding transaction
or any of the other said transactions on the Companys operations and financial
condition, and the anticipated impact of the agglomeration drum on gold
production at Namoya) 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: uncertainties relating to the availability and costs of financing
needed in the future; failure to complete any of the transactions referred to
above; the possibility that the completion of the Gold Holding transaction may
be further delayed; the possibility that the benefits of the agglomeration drum
at Namoya are less than expected or the commissioning of the agglomeration drum
at Namoya is delayed; 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);
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; 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.
A-4
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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