DCP.L Regulatory News (DCP)

13 Nov 2008 08:00



DiamondCorp Plc

[JSE share code: DMC & AIM share code: DCP]

ISIN: GB00B183ZC46

(Incorporated in England and Wales)

(Registration number 05400982)

(SA company registration number 2007/031444/10)

('DiamondCorp' or 'the Company')

New Substantial Shareholder

European Islamic Investment Bank plc ('EIIB') increases holding from 9.37% to 26.7% to become largest shareholder.

Confidence in long term strength of diamond sector and the continued development of the Lace diamond mine.

Follows the recently announced Private Placing to EIIB for general working capital purposes 

DiamondCorp plc, the South African diamond mining company, announces that the European Islamic Investment Bank plc ('EIIB') has advised it has increased its shareholding from 9.37% to 26.09% through the acquisition of 6,720,555 shares.

The shares were acquired on market from a number of institutions and shareholders. This purchase follows EIIB's initial investment into DiamondCorp plc on Wednesday, 5 November 2008, through a private placement of 4,000,000 shares.

The Managing Director and CEO of DiamondCorp, Mr Paul Loudon said: "I welcome EIIB onto our register as our largest shareholder.

"This investment demonstrates EIIB's confidence in the underlying fundamentals of the diamond market, including the long-term supply shortage which should lead to a strengthening in diamond prices.

"DiamondCorp's plan to grow as a mid-tier diamond producer in the years ahead has the potential to benefit from EIIB's access to capital and backing by very large Middle Eastern investors," he said.

Mr Robin Henshall, Head of Private Equity and Corporate Advisory at EIIB, said: "EIIB is delighted to have invested in DiamondCorp. We are impressed by the experienced management team and have confidence in the continuing development at DiamondCorp's Lace kimberlite pipe, which is more than a year ahead of schedule. We look forward to underground mining commencing by the end of this year."

13 November 2008London

Sponsor:

Investec Bank Limited

For further information, please contact:

Paul Loudon

DiamondCorp plc

+44 20 7256 2651 

www.diamondcorp.plc.uk

Joe Nally/Liz Bowman

Cenkos Securities plc

+44 20 7397 8900

Robert Smith/Tanis Crosby

Investec Bank Limited

+27 11 286 7662

Charmane Russell

Russell & Associates

+27 11 880 3924

Gareth Tredway/Jos Simson/Jane Stacey

Conduit PR

+44 20 7429 6612/+44 7785 974 264

  NOTES TO EDITORS

DiamondCorp plc

DiamondCorp is listed on the main board of the JSE Limited and the AIM Market of the London Stock Exchange. The Company is developing the Lace kimberlite mine in the Free State Province of South Africa. 

Phase One of the Lace mine was commissioned a year ago, and recovers diamonds from tailings re-treatment. Phase Two involves re-opening the underground workings to access more than 38 million tonnes of kimberlite containing an estimated 14 million carats. 

Phase Two, which is more than 12 months ahead of schedule, will see the commencement of kimberlite mining before the end of this year. At peak production, Lace is expected to produce more than 500,000 carats of gem diamonds per year.

European Islamic Investment Bank plc

EIIB was incorporated in January 2005 and received authorisation by the FSA in March 2006. In April 2006, EIIB opened for business, and in May 2006 completed its IPO and was admitted to London's AIM market. In November 2006 EIIB opened a representative office in Bahrain.

EIIB's mission is to achieve excellence in the provision of Sharia'a compliant investment banking products and services.

Headquartered in London, EIIB's range of products and services include the following Sharia'a compliant investment banking activities:

- Islamic Treasury and Capital Markets - Asset Management, including Private Banking - Structured Trade Finance  - Private Equity and Corporate Advisory - Sharia'a Advisory.

EIIB aims to deliver a full choice of alternative investment opportunities, enabling Islamic investors to construct balanced and sophisticated portfolios which can access a full range of asset classes internationally.

EIIB seeks to service a market for Sharia'a compliant investment banking services in Europe, the Middle East and Asia, that it believes has been under-exploited by conventional and Islamic banks, and by non-banking institutions. EIIB intends to become a major participant in the market for Islamic securities, treasury and investment products.

The founding shareholders of EIIB include Gulf based individuals and institutions, including a number of Islamic banks, as well as individuals and companies based in Europe.