GRN.L Regulatory News (GRN)

16 Dec 2005 07:00

Gravity Diamonds Limited16 December 2005 RELEASED ON BEHALF OF: GRAVITY DIAMONDS LIMITED (ASX & AIM : GRN) 16 December 2005 GRAVITY DIAMONDS' RIGHTS ISSUE- LARGEST SHAREHOLDER SUBSCRIBES TO FULL ENTITLEMENT Gravity Diamonds Limited is pleased to announce that BHP Billiton Minerals PtyLtd, the company's largest shareholder, has applied for its full entitlementunder the rights issue announced on 10 November 2005. The company is seeking to raise up to A$12.6 million by means of a 1 for 4non-renounceable rights issue at $0.42 per share with an attaching optionexercisable up to 30 November 2007 at $0.50 for every two shares subscribed for.This issue is intended to raise additional working capital to follow-up thepositive exploration results already announced to the market in both Australiaand the Democratic Republic of Congo during the upcoming respective fieldseasons. Further Information: Phil Harman, Managing Director, Gravity Diamonds Ltd. Tel: 00-61-3-9909-7655Elisa Bartlett, Assistant to the Managing Director, Gravity Diamonds Ltd. Tel:00-61-3-9909-7655Ron 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