TORONTO, March 27, 2018 /CNW/ - Banro Corporation
("Banro" or the "Company") and its Barbados-based subsidiaries (collectively, the
"Companies" and together with the subsidiaries in
the Democratic Republic of the
Congo (the "DRC"), the
"Banro Group") are pleased
to announce that the Ontario Superior Court of
Justice (Commercial List) (the "Court") has
sanctioned the Companies' Amended Consolidated Plan
of Compromise and Reorganization (the "Recapitalization
Plan"). The Companies are now working towards satisfying
conditions precedent and closing the recapitalization transaction
as soon as possible.
The Court's sanction of
the Recapitalization Plan is a key step
towards its implementation and the Companies'
emergence from protection under the Companies'
Creditors Arrangement Act ("CCAA"). The
Recapitalization Plan represents the best alternative for the
long-term interests of the Banro Group which
significantly reduces debt, improves liquidity, and allows
the Banro Group to continue ongoing operations in the
DRC.
A copy of the Recapitalization Plan and materials related
thereto are available on the Monitor's website at
http://cfcanada.fticonsulting.com/banro/ and on SEDAR. Banro
will continue to provide updates as developments warrant.
Banro Corporation is a Canadian gold mining company
focused on production from the Twangiza and Namoya mines, which
began commercial production in September
2012 and January 2016
respectively. Banro's 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 kilometres long
Twangiza-Namoya gold belt in the South Kivu and Maniema Provinces
of the DRC. 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 CCAA proceedings, the restructuring process,
the Company's liquidity and ability to meet payment obligations and
the timing of meeting such payment obligations, the Company's
intentions for the future of its business operations and long-term
strategy, and the Company's commitment to its employees and
suppliers) 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, the possibility that the Company will be unable to
implement the restructuring. In addition, actual results or
events could differ materially from current expectations due
to instability in the eastern DRC where the Company's mines are
located; political developments in the DRC; uncertainties
relating to the availability and costs of financing or other
appropriate strategic transactions; uncertainty of estimates
of capital and operating costs, production estimates and estimated
economic return of the Company's projects; the possibility that
actual circumstances will differ from the estimates and assumptions
used in the economic studies of the Company's projects; failure to
establish estimated mineral resources and mineral reserves (the
Company's 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
expected; changes in capital markets; 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;
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 report on Form
20-F dated April 2, 2017 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. The forward-looking statements
contained in this press release are expressly qualified by this
cautionary note.
SOURCE Banro Corporation