GRN.L Regulatory News (GRN)

11 Nov 2005 07:29

Gravity Diamonds Limited11 November 2005 RELEASED ON BEHALF OF: GRAVITY DIAMONDS LIMITED (ASX & AIM : GRN) 11 November 2005 Rights Issue and Appendix 3B Gravity Diamonds Limited is pleased to announce that it is making anon-renounceable pro rata offer to shareholders to subscribe for one new sharein Gravity for every four shares held as at Monday, 21 November 2005 (RecordDate). The new shares are being offered at 42 cents per share. In addition,shareholders who subscribe for new shares will also receive one free new optionfor every two new shares subscribed for. The new options will be exercisable at50 cents per share at any time before 30 November 2007. Shareholders will shortly receive a prospectus which was lodged with ASIC thismorning, and (if eligible) an Entitlement and Acceptance Form. Currentoptionholders will be afforded the opportunity to exercise all or some of theiroptions in accordance with the terms of issue of their options before the RecordDate. In addition, shareholders who accept their entitlements in full will be able toapply for additional new shares and new options not accepted by othershareholders under the offer. Also, in the event that not all new shares and new options are subscribed for,the company reserves its right to place such securities at not less than thesame price at any time within the three month period after the close of theoffer. Gravity intends to use the proceeds of this offer to fund its continuedexploration and drilling programmes in Australia and in the DRC, in each ofwhich considerable progress has been made and previously announced to themarket. Gravity is seeking to raise up to approximately $12.6 million through the issueof the new shares, with additional funding of up to approximately $7.4 millionbeing sought through the potential future exercise of the new options. It is notbeing underwritten. The offer is expected to close on 14 December 2005 (Closing Date), subject tothe company's right to amend the timetable. Other key information is set out in the attached Appendix 3B. If eligible shareholders wish to participate in the offer, it will be necessaryfor them to complete their personalised Entitlement and Acceptance Forms whichwill accompany their copy of the Prospectus to be mailed on 24 November 2005 andto return it, with the appropriate application monies, to the company's shareregistry no later than the Closing Date. Please follow the PDF link below to view the Appendix 3B "New issueannouncement, application for quotation of additional securities and agreement". http://www.rns-pdf.londonstockexchange.com/rns/9920t_-2005-11-11.pdf 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