5 Jun 2008 16:23
AIM: EVE
PRESS RELEASE
5 June 2008
Everfor Diamonds plc
("Everfor" or the "Company")
Everfor Relinquishes Diamond Exploration Licences, Appoints New Director
and Advises of Extraordinary General Meeting
Everfor Diamonds plc ("Everfor", or the "Company") (AIM:EVE), has taken the decision to relinquish its current licence agreements and cease exploration activities at its four licence areas within the Kola Peninsula.
Although the Company initially received positive technical assessments of the licence areas, highlighting the possible untapped potential of the Kola Peninsula, the on-going work programme has not identified any targets likely to be of commercial interest. The Company is actively pursuing other projects to further its exploration activities.
With effect from 29 May 2008, the Company announces the following change to the Board:
Mr Petro Mychalkiw, aged 42, has been appointed as a director of the Company and Chief Financial Officer; Mr David Swan has stood down as Finance Director and Company Secretary, while Mr Donald Duncan has also stood down as Managing Director. With regard to the appointment of Mr Mychalkiw there are no further matters to be disclosed under Schedule Two (g) of the AIM Rules.
Everfor's on-going directors each have considerable experience in the mining industry within the countries of the Former Soviet Union ("FSU"). Dr Sergey V Kurzin continues as Executive Chairman of Everfor. He is also currently the Chairman of Lero Gold Corp. and has previously played key roles in initiatives to acquire and progress several important FSU mining assets for such companies as Oriel Resources, Bema Gold, UrAsia Energy and European Minerals Corporation ("EMC"). Mr Mychalkiw has significant experience in the financial aspect of acquisitions, particularly through transactions such as EMC's on-going merger with Lero Gold Corp. at which he holds the position of Chief Financial Officer and through his previous employment as Treasurer and Head of Corporate Finance of Oriel Resources.
Under the AIM Rules for Companies (the "AIM Rules") published by the London Stock Exchange plc (the "London Stock Exchange") where a company whose shares are traded on AIM divests itself of all or substantially all of its trading business activities it will be treated as an "investing company"; effectively a cash shell. Such a company must then state its investing strategy (the "Investing Strategy") going forward and implement its Investing Strategy, to the satisfaction of the London Stock Exchange, within twelve months of shareholders approving the Investing Strategy.
By virtue of the fact that the Company has relinquished its exploration licences whilst remaining an active investor, the London Stock Exchange has confirmed that the Company will have effectively divested itself of its trading business and going forward, will be treated as an investing company as described above.
The Investing Strategy of the Company will be to invest in opportunities in the natural resources sector. The implementation of the Investing Strategy may include several investments in, or the acquisition of, various exploration, development or production projects in the minerals, base metals, precious metals, or hydrocarbons related industries. Any due diligence carried out on future projects will be implemented by reputable professional advisors and consultants experienced in the related industries.
Whilst the Investing Strategy may be implemented on assets based anywhere in the world, given the directors' collective experience within the countries of the FSU, the directors expect the underlying assets to be located primarily in that region.
The directors anticipate that the Company has enough working capital to continue for at least 12 months from the date of the EGM without making any investments but it intends to carry out a new fund raising as soon as it has identified suitable investment opportunities. The Company intends to be an active investor and focus its investments in a limited number of companies and businesses.
Under AIM Rule 15, it is necessary for the Company to seek approval of its shareholders for the implementation of the proposed Investing Strategy and accordingly, the Company is shortly posting a circular (the "Circular") to shareholders.
Accompanying the Circular will be a notice of an extraordinary general meeting (the "EGM") to be held at 12 noon on 30 June 2008 at Ground Floor, 1 Red Place, London, W1K 6PL. Included in the proposed resolutions of the EGM is the resolution to approve the Investing Strategy.
The EGM will also be used to approve the following:
Change the Company's name to Everfor Resources plc
Consolidate and subdivide the share capital
Authorise directors to allot equity securities up to maximum aggregate nominal amount of £200,000
Amend the Articles of Association to incorporate "deferred" shares
The Circular, Notice of EGM and proxy cards will be available for download from the Company's website (www.everfor.com).
Dr Sergey V Kurzin, Executive Chairman of Everfor commented:
"The Board is disappointed that the exploration programme in the Kola Peninsula has not been successful and would like to express its appreciation for the efforts of its employees and the co-operation of the Russian Government. At the forthcoming EGM we propose to re-name and re-structure the company to have it poised for new opportunities.
I am delighted Petro has agreed to join the Everfor board. His financial experience will complement our existing high quality team.
I would like to thank David and Donald for their contribution and support of the Company."
ENDS
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For further information please contact:
Dr Sergey V Kurzin, Executive Chairman, Everfor Diamonds plc
Tel: +44 (0) 20 7514 0590
Tania Tchedaeva, Company Secretary, Everfor Diamonds plc
Tel: +44 (0) 20 7514 0590
Gavin Dallas, Marketing and PR, Everfor Diamonds Plc
Tel: +44 (0)20 7514 0590
Ryan Gaffney / Henry Fitzgerald-O'Connor, Canaccord Adams Limited
Tel: +44 (0) 20 7050 6500
www.everfor.com