Placing of New Shares
April 06 2010 - 1:00AM
UK Regulatory
TIDMAFD
RNS Number : 6934J
African Diamonds PLC
06 April 2010
6th April 2010
Placing of New Shares
· Placing to raise GBP9.6 million
· African Diamonds to increase its stake in AK6 to 40%
African Diamonds plc (AIM: AFD), the Botswana diamond company, is pleased to
announce it has undertaken a conditional placing of 24,146,500 ordinary shares
at a price of 40 pence per share, in conjunction with FinnCap, to raise
approximately GBP9.6 million before expenses. The shares will be placed under
the existing share authorities and will rank pari passu with the existing issued
ordinary share capital.
The proceeds of the placing will be used in three ways. Firstly, to increase
African Diamonds' share in AK6 to 40%; secondly, to fund African Diamonds'
portion of the early works budget on AK6; and thirdly, for general working
capital and exploration. The early works programme includes orders for
long-lead time capital equipment and mine site development. Exploration will be
focused on African Diamonds' 100% owned AK8, AK9 and BK5 projects, all located
in the vicinity of AK6 in Botswana.
African Diamonds' directors and families will invest, in aggregate, GBP1 million
in the placing. Following the placing, there will be 100,357,266 ordinary
shares in issue and the directors' interests are as follows:
No of shares Percentage No of
shares Percentage
before placing before placing
following placing following placing
John Teeling 3,295,820 4.32
4,045,820 4.03
David Horgan 2,795,720 3.67
3,295,720 3.28
James Finn 2,795,820 3.67
3,295,820 3.28
The participation of the directors of the Company and their families, as
discussed above, in the placing is a related party transaction. It is the view
of the Independent Directors, being Mr James Campbell and Mr Alex Van Zyl, who
have been so advised by FinnCap, that the participation of the directors and
their families in the placing is fair and reasonable insofar as its shareholders
are concerned. In providing advice to the Independent Directors, FinnCap have
taken into account the Independent Directors' commercial assessment.
Application for 24,146,500 new ordinary shares to be admitted to trading on AIM
has been made. Admission is expected on 8th April 2010 (other than for the
shares to be issued to directors which will be admitted on receipt of their
funds at the end of April).
John Teeling, Chairman, commented:
"I am delighted by the support African Diamonds has received from a significant
number of institutional investors. The funds raised will be used to increase
our stake in the AK6 diamond project to 40%, to fund an early works programme on
the mine, and to explore promising diamond targets on our Botswana acreage.
As the final studies on AK6 are nearing completion, the fundamentals of the mine
continue to improve. The mine is expected to come on stream in late 2011.
During the struggle to commercialise the AK6 discovery, our top quality
exploration ground was ignored. Targets such as AK8 and AK9 are known to
shareholders, but we have other prospective kimberlites, in particular, BK5. We
now have the time and money to focus on these targets. There are more diamond
mines to be discovered in Botswana".
This release has been approved by Alex van Zyl, Technical Director 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.
Further information:
African Diamonds Plc
John Teeling Tel: +353 1 8332833
James AH Campbell Tel: +27 83 457 3724
Finn Cap
Clive Carver, Corporate Finance Tel: +44 207 600 1658
Henrik Persson, Corporate Finance Tel: +44 207 600 1658
Joanna Weaving, Corporate Broking Tel: +44 207 600 1658
College Hill
Nick Elwes Tel: +44 (0) 20 7457
2020
www.afdiamonds.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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