GRN.L Regulatory News (GRN)

8 May 2007 07:00

Gravity Diamonds Limited07 May 2007 RELEASED ON BEHALF OF: GRAVITY DIAMONDS LIMITED (ASX & AIM : GRN) 7 May 2007 SCHEMES OF ARRANGEMENT BECOME EFFECTIVE As advised on 4 May 2007, the Supreme Court of Victoria made orders approving: • a scheme of arrangement between Gravity Diamonds Limited (Gravity) and its shareholders under which all Gravity shares will be transferred to Mwana Africa plc (Mwana) in consideration of Mwana paying Gravity shareholders $0.28 cash per Gravity share or issuing one Mwana share for every four Gravity shares (Share Scheme); and • a scheme of arrangement between Gravity and its ASX-listed optionholders under which all Gravity ASX-listed options will be transferred to Mwana for cash consideration of $0.06 per Gravity option (Option Scheme). An office copy of the Court's orders approving the Share Scheme and the OptionScheme (together, the Schemes) have today been lodged with the AustralianSecurities and Investments Commission, meaning that each Scheme has now becomelegally effective. Upon implementation of the Schemes, Gravity will become awholly-owned subsidiary of Mwana. Key times and dates for the implementation of the Schemes are set out below(capitalised terms have the meaning given to them in the Explanatory Bookletdated 16 March 2007 in relation to the Mwana Acquisition Proposal). 4.00 pm on Monday, Suspension of trading in Gravity Shares and Options on ASX7 May 2007 and Gravity Shares on AIM------------------- -------------------------------5.00 pm on Monday, Record Date: time and date for determining entitlements to14 May 2007 the Scheme Consideration Last time and date for receiving notices of exercise of Gravity options Last time and date for receiving Scrip Election forms------------------- -------------------------------Monday, 21 May 2007 Implementation: • transfer of Gravity Shares and Options to Mwana • payment of the Share Scheme Consideration to Scheme Shareholders and Scheme Optionholders • issue of Mwana Shares to Scheme Shareholders who made a Scrip Election------------------- ------------------------------- Further Information: Phil Harman, Managing Director, Gravity Diamonds Ltd. Tel: +61-3-9909-7655 Elisa Bartlett, Assistant to the Managing Director, Gravity Diamonds Ltd. Tel:+61-3-9909-7655 www.gravitydiamonds.com.au This information is provided by RNS The company news service from the London Stock Exchange