Additional disclosures pursuant to the AIM Rules
Kenai reported an audited consolidated loss before taxation of C$(1,579,815) for the year ended 31 December 2012 (2011: C$(1,028,449)) after a write-down of its mineral properties of C$(789,738). Kenai had no revenues. As at 31 December 2012 total assets and shareholders' equity amounted to C$8,756,433 and C$8,554,238 respectively. The balance sheet carrying value of the Sao Chico project as at 31 December 2012 amounted to C$8,016,158. As at 31 December 2012 Kenai had net cash and cash equivalents of C$637,097 and no borrowings.
Daniel Kunz (the current Chairman of Kenai), who will join the Serabi board as a non-executive director on closing of the Transaction (subject to satisfactory completion of standard regulatory checks in compliance with the AIM Rules), will be entitled to receive a fee of C$20,000 per annum and a further C$500 in respect of each Serabi board meeting that he attends. His proposed appointment as a director does not provide for any minimum period of service or for the provision of any period of notice of termination by either party.
This press release does not constitute an offer to buy or an invitation to sell, or the solicitation of an offer to buy or invitation to sell, any securities of Serabi or Kenai. Subject to the terms and conditions set forth in the Agreement, as amended, Kenai intends to file a notice of meeting, management information circular and related materials with Canadian securities regulatory authorities relating to the proposed transaction. Investors and security holders are urged to read these documents, as well as any amendments and supplements to these documents, when they become available because they will contain important information. At that time, investors and security holders may obtain a free copy of the Kenai management information circular and related documents at the Canadian securities regulators' website at www.sedar.com. At that time, free copies of these documents can also be obtained by directing a request to Kenai at 625 Howe Street, Suite 530, Vancouver, BC, Canada, V6C 2T6. KENAI SHAREHOLDERS SHOULD READ THE MANAGEMENT INFORMATION CIRCULAR AND RELATED MATERIALS CAREFULLY BEFORE MAKING A DECISION CONCERNING THE PROPOSED TRANSACTION.
About the Sao Chico Property
The Sao Chico gold project comprises a single exploration permit, AP12836 with an area of 1,416 hectares, located approximately 23 kilometres to the south west of the Palito mine and accessed by road from Palito along the Transgarimpeiro Highway via the town of Jardim do Ouro.
On October 15, 2012, Kenai filed a Technical Report entitled "Mineral Resource Estimate on the Sao Chico Gold Project, Brazil" dated October 15, 2012 and authored by Mr A.J. Tunningley, MGEOL (Hons), MAusIMM (CP), MSEG, and Mr B. Ackroyd, BSc (Geo), MAIG in accordance with Canadian National Instrument 43-101 relating to the Sao Chico gold project ("the Sao Chico Technical Report"). The Sao Chico Technical Report has been reviewed on behalf of Serabi by Michael J Hodgson, a Qualified Person for the purposes of Canadian National Instrument 43-101. To the best of Serabi's knowledge and belief, there is no new material scientific or technical information that would make the disclosure of the mineral resources in the Sao Chico Technical Report inaccurate or misleading.
The Sao Chico Technical Report established an independent mineral resource based on the results of 22 diamond drill holes totalling 3,268 metres undertaken by Kenai in late 2011. The NI 43-101 mineral resources are as follows:
Tonnes Grade Au Ounces g/t----------------------------------------------------------------------------Measured Resources 5,064 32.46 5,269Indicated Resources 21,423 29.14 20,006Total measured and Indicated Resources 26,487 29.77 25,275----------------------------------------------------------------------------Inferred Resources 85,577 26.03 71,385----------------------------------------------------------------------------
