RNS Number : 5209G
West African Diamonds PLC
23 October 2008
23 October 2008
WEST AFRICAN DIAMONDS PLC
("West African Diamonds" or the "Company")
PLACING ANNOUNCEMENT & NEW DIRECTORS
The board of West African Diamonds (AIM: WAD), is pleased to announce a placing of
15,400,000 new ordinary shares at a price of 10p per
share to a consortium of investors. This follows a recent placing of 2,000,000 new ordinary
shares at a price of 10p per share.
The aggregate of both placings, 17,400,000 new ordinary shares, represents 29.92 per cent
of the enlarged issued share capital of the
Company and the new shares rank pari passu in all respects with the existing issued share
capital.
Investing in the Company are Audley European Opportunities Master Fund Limited (holding a
total of 8,700,000 new ordinary shares
representing 14.96% of the enlarged issued share capital) and African Minerals Limited
(holding a total of 8,700,000 new ordinary shares
representing 14.96% of the enlarged issued). Following the placing the enlarged issue share
capital will be 58,150,758 ordinary shares.
While work continues in Sierra Leone, the Company is currently focussing on its operations
in Guinea where the bulk of the new equity
will be invested. Plant and earthmoving equipment have been transported from Sierra Leone to
the Bomboko alluvial diamond project in Guinea
where production is scheduled to commence in the next 3 months. A mobile Dense Media
Separation (DMS) bulk sampling plant has arrived in
Guinea, where over the coming months it will bulk sample kimberlite pipes on our licences.
In Sierra Leone, economic assessment of Plant 11 and Plant 6 projects is ongoing as is
resource assessment of Pipe 3 and kimberlite dykes in
Koidu.
In addition, the Company is pleased to announce that two additional non-executive
directors will be appointed, as follows:
Roy Aubrey Pitchford, 58 whose current directorships and partnerships are African Minerals
Limited, Pan Palladium Limited, Unity Power
plc, Central African Gold plc, Sabi Gold Limited and Lesego Platinum Mine Limited. Mr
Pitchford's directorships and partnerships held in the
previous five years are African Platinum plc, Zimbabwe Platinum Mines Limited and Lead
International (UK) Limited.
Julian Andre Treger, 45 whose current directorships and partnerships are Audley Capital
Advisors Limited, Audley Capital Advisors LLP,
BNB Resources plc, Blackstar Investors Plc, JAB Limited, Western Canadian Coal Inc. and RM
Auctions Inc. Mr Treger's directorships and
partnerships held in the previous five years are Illuminator Holdings Limited, Illuminator
Investments Limited, JAB Holdings Limited, Purple
Capital Limited, The Corporate Services Group plc, Multimedia Trustees Limited, Sage Group
Limited, Sage Life Limited and Sage Unit Trusts
Limited.
No further information is required to be given in respect of these appointments in
compliance with the requirements of paragraph (g),
Schedule Two of the AIM Rules.
The new ordinary shares will be issued under the terms of the Company's existing
authorities and application has been made for the new
ordinary shares to be admitted to AIM. It is expected that dealings in the new ordinary shares
will commence from 31 October 2008.
The Company continues to be in discussions with third parties. A further announcement will
be made as soon as practicable.
John Teeling, Chairman, commented: "This is a very welcome development for West African
Diamonds. There are significant diamond and
precious metal opportunities in West Africa. It is a challenging environment but West African
Diamonds now has the expertise, experience
and cash to develop our existing assets while evaluating other opportunities. I extend a warm
welcome to our new directors."
Enquiries:
West African Diamonds
John Teeling, Chairman + 353 1 8332833
James Campbell, Deputy Chairman +27 83 457 3724
Blue Oar Securities Plc
John Wakefield +44 (0) 117 933 0020
College Hill
Paddy Blewer +44 (0) 20 7457 2020
Nick Elwes +44 (0) 20 7457 2020
This release has been approved by Alex van Zyl, Technical Director, West African Diamonds. Alex van Zyl (B.Sc. Stellenbosch, B.Sc. Hons. Pretoria) spent a long career in Anglo American in the diamond division, ending up 1990
to 1997 with worldwide responsibility for
diamond exploration and evaluation. He was a consultant to De Beers from 1997 to 2002.
This information is provided by RNS
The company news service from the London Stock Exchange
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