Asa Resources Regulatory News (ASA)

2 Mar 2007 07:30

Gravity Diamonds Limited02 March 2007 RELEASED ON BEHALF OF: GRAVITY DIAMONDS LIMITED (ASX & AIM : GRN) 2 March 2007 MERGER BETWEEN GRAVITY DIAMONDS LIMITED AND MWANA AFRICA PLC PROGRESSING On November 17, 2006 Gravity Diamonds Limited ("Gravity") and Mwana Africa plc("Mwana") announced a proposed merger of the two companies which is to beachieved via two "Schemes of Arrangement" under the Corporations Act, the firstbetween Gravity and its shareholders and the second between Gravity and itslisted optionholders. The schemes of arrangement require preparation of an "Explanatory Booklet" forcirculation to shareholders and listed optionholders. Before the ExplanatoryBooklet can be dispatched, an Australian Court must make orders directingmeetings of shareholders and listed optionholders to be held and the ExplanatoryBooklet must be lodged with and reviewed by the Australian Securities andInvestments Commission ("ASIC"). Shareholders and listed optionholders will thenbe asked at those meetings to approve the respective schemes. Through a combination of factors, including the Christmas and summer holidaysand the need to have an independent expert appointed to review the affairs ofboth Gravity and Mwana, the preparation of the Explanatory Booklet and relatedgeneral meeting materials has taken longer than originally anticipated. However,Gravity has now lodged a draft Explanatory Booklet with ASIC for its review andexpects to dispatch the Explanatory Booklet and related materials to you laterthis month. Meetings of Gravity shareholders and listed optionholders areanticipated to occur in late April 2007 and, if approved by securityholders, theschemes will take effect shortly afterward, subject to Court approval. Gravity wishes to reassure shareholders and listed optionholders that both Mwanaand Gravity remain committed to the completion of the schemes as soon aspossible for the benefit of all Gravity shareholders and listed optionholders. Further Information: Phil Harman, Managing Director, Gravity Diamonds Ltd. Tel: +61-3-9909-7655 Elisa Bartlett, Assistant to the Managing Director, Gravity Diamonds Ltd. Tel: +61-3-9909-7655 Ron Marshman/John Greenhalgh, City of London PR Ltd. Tel: 020-7628-5518 This information is provided by RNS The company news service from the London Stock Exchange