AMI.L Regulatory News (AMI)

7 Dec 2006 16:09

Sierra Leone Diamond Company Ld07 December 2006 For immediate release 7 December 2006 Sierra Leone Diamond Company Limited ("SLDC" or "the Company") Proposed Cash Placing ("Placing") Sierra Leone Diamond Company (AIM: SLD), the diamond exploration company whollyfocused on the country of Sierra Leone, today announces a cash placing to raisea minimum of £13 million (before expenses) at 115 pence per share to provide thefunds to finance the expansion of its current diamond projects and thedevelopment of additional non-diamond assets. Details of the Placing New common shares of US$0.01 each ("New Common Shares") will be placed withinstitutional investors to raise a minimum of £13 million (gross of expenses).The Placing is based on a placing price of 115 pence per share. Under thePlacing, a minimum of 11.3 million New Common Shares will be available to beplaced, representing approximately 9.6 per cent. of SLDC's existing issued sharecapital. The net proceeds of the Placing will be used to provide further working capitaland support SLDC's ongoing operations in Sierra Leone to develop its three mainareas of activity: • Alluvial diamond exploration and production • Hard rock kimberlite exploration • Non diamonds projects The New Common Shares will be credited as fully paid and will rank pari passu inall respects with the existing common shares in the share capital of theCompany. Commenting on the Proposed Placing, David Gadd-Claxton Chief Executive Officerof SLDC said: "SLDC's strategy of securing positive cash flow from its alluvial operationsremains on track, whilst the funds raised will allow the Company to increase itsalluvial diamond capacity. advance Kimberlite exploration on the numerousKimberlite targets and finance the drilling of the iron ore and gold deposits. "We look forward to continuing to generate value for our shareholders inexecuting on this strategy." For further information please contact: Sierra Leone Diamond Company Limited 01442 257246David Gadd-Claxton, Chief Executive OfficerGordon Stein, Interim Chief Financial Officer Canaccord Adams Limited 020 7050 6500Mark AshurstMike Jones Buchanan Communications 020 7466 5000Bobby MorseBen WilleyNick Melson This information is provided by RNS The company news service from the London Stock Exchange