Gem Diamonds Di Regulatory News (GEMD)

20 Mar 2007 10:41

Gem Diamonds Limited20 March 2007 News Release 20 March 2007 GEM DIAMONDS CONFIRMS CO-OPERATION AGREEMENT ON ANGOLAN CHIRI CONCESSION On 10 January 2007, Gem Diamonds Limited ('Gem Diamonds' or 'the Company'),which joined the Main Board of the London Stock Exchange on 14 February 2007(LSE: GEMD) entered into a conditional Co-Operation Agreement and an OptionAgreement with Avantis Angola Limited ("Avantis") (collectively 'the Parties').In terms of these agreements the Company has an option to acquire an interest ofup to 11.25% in the Chiri Concession in Angola by way of an investment inAvantis which currently holds a 25% interest in this concession. Gem Diamonds today announces that all conditions precedent, including thecompletion of a due diligence by the Company over the Chiri Concession and ofAvantis over the Company have been met and the Co-operation Agreement is nowunconditional. ENDS For further information: Gem Diamonds LimitedGraham WheelockTel: +44 77 99 831 912 MerlinBridget FuryTel: +44 79 41 085 506 About Gem Diamonds Limited (Gem Diamonds) Gem Diamonds is a specialist diamond mining group with assets concentrated inAfrica. The Group was founded in July 2005 by Clifford Elphick, a highlyexperienced diamond mining executive, who was previously Managing Director of EOppenheimer & Son. Gem Diamonds has a balanced portfolio of assets, includingearly stage exploration projects right through to a producing diamond mine withstrong, positive cash flow. It is the operator and owner of a majority stake inthe successful Letseng diamond mine in Lesotho, with the remainder being held bythe Government of Lesotho. It also has interests in exploration projects in theLongatshimo and Tshumbe-Lubembe regions of the Democratic Republic of Congo andthe Mambere River region in the Central African. The directorate comprises Clifford Elphick as Chairman and Chief ExecutiveOfficer, Kevin Burford as Chief Financial Officer and Graham Wheelock as MineralResources Manager. Senior management includes Terry Stewart as Chief OperatingOfficer and Glenn Turner as Chief Commercial and Legal Officer. Gem Diamonds is listed on the Main Market of the London Stock Exchange andtrades under the code GEMD. At the time of this announcement the marketcapitalization of the company is £604 million. This information is provided by RNS The company news service from the London Stock Exchange