Sant Uk.10te% Regulatory News (SAN)

28 Jul 2005 09:51

Sanatana Diamonds Inc28 July 2005 Sanatana Diamonds Inc Admission to trading on AIM Exploration and development of diamonds in Northwest Territories and Nunavut, Canada C$2.5m to be contributed by Rio Tinto's subsidiary, Kennecott Sanatana Diamonds Inc ("Sanatana" or the "Company") was admitted to trading onAIM today, 28 July 2005, following a successful Placing by Insinger de Beaufortand a subscription by certain Canadian investors of a total of 2,890,398 newCommon Shares representing 8.6 per cent of the Enlarged Share Capital at 82p pershare to raise approximately £2.1 million, net of expenses. The Company was established to engage in primary diamond exploration anddevelopment in the Northwest Territories ("NWT") and Nunavut, Canada. Thecurrent exploration portfolio of the Company consists of the Mackenzie DiamondProject which covers approximately 20 million acres and which contains a numberof prospective diamond bearing areas. Sanatana has completed one field season oftill sampling and a programme of geophysical exploration and has interpreted theresults of both to target exploration in 2005. In July 2005, the Company signed an agreement with Kennecott, a subsidiary ofthe major international mining and resource company Rio Tinto plc, under whichKennecott will participate in the Placing, contribute to the exploration fundingof the Mackenzie Diamond Project and may earn an interest in any kimberlite andother mineral deposit discovery. In accordance with the agreement, Kennecottwill invest an initial C$2.5 million in Sanatana under the Placing, will berequired to contribute C$2.5 million towards the 2005 exploration program andmay contribute C$2.5 million towards the 2006 exploration programme. The Company is managed by a group of professionals with extensive experience inthe exploration, development and financing of exploration and mining projects.The Directors believe that management's understanding and expertise in theCanadian diamond exploration environment provide the Company with the requisiteskills for the longer term exploration and subsequent definition of anykimberlite discoveries and therefore provide the Company with the best possiblechance of discovering diamondiferous kimberlites. Following the successful placing today, C.E.O, Glenn Laing commented "Sanatananow has the funds to pursue our exploration programme for 2005. With the supportof Rio Tinto's subsidiary, Kennecott, Sanatana is now in an excellent positionto pursue diamond discoveries on our 20 million acre licence." For further information visit www.sanatanadiamonds.com Amanda Harris Conduit PR amanda@conduitpr.com 020 7618 8534 Alex Collins Insinger de Beaufort acollins@insinger.com 020 7190 7000 Glenn Laing Sanatana Diamonds glaing@sanatanadiamonds.com The Northwest Territories The NWT cover approximately 1.17 million square kilometres encompassing 33communities. Mining and petroleum development are the primary source of economicwealth for the NWT. As of December 2002, there were over 42,000 people living in the NWT,approximately half of whom are aboriginal. Yellowknife is home to 44 per cent.of the population, 29 per cent. live in five other larger centres and theremainder in small communities with average populations of 400. Infrastructure The economy of the NWT is inextricably linked to natural resources, with theexploration and development of these resources playing a significant role in thehistory and building of the infrastructure of the NWT. Mineral and petroleumdevelopment continue to be the foundation of the NWT's economic development,with two diamond mines in production, a further two in the pipeline and thepossibility of a Mackenzie kimberlite province in the future. There is a daily air service to the NWT, with connections from major cities inCanada and an extensive network of regional airlines provide scheduled servicesto almost all the smaller communities within the NWT. Road access is limited,with the primary route into the NWT being the Mackenzie Highway from Edmonton,Alberta (1,508 kilometres south of Yellowknife). Within the NWT, paved roadsexist between Yellowknife and Hay River. Location of the Mackenzie Diamond Project The Mackenzie Diamond Project consists of an extensive land position coveringapproximately 20 million acres positioned to the north of Great Bear Lake in theNWT and Nunavut and lies approximately 700 kilometres northwest of the town ofYellowknife, Canada. The location of the Mackenzie Diamond Project benefits from the infrastructurethat has been built as a result of the extensive oil and gas exploration anddevelopment that has taken place in the region over the last 40 years. Accessinto the Mackenzie Diamond Project area is by ice road in winter and by airthroughout the year. The entire Mackenzie Diamond Project area is covered by iceand snow from October to June and temperatures range from a maximum of 20degreesC in summer to a minimum of -45degreesC in winter. Director Current Directorships Past Directorships Richard Prickett Capital Pub Company PLC Brancote Holdings Plc European Sales Company Ltd Primeent Plc HPD Exploration Limited Probus Estates Plc HPD Mining Limited Regent Inns Landore Resources Inc. Landore Resources Ltd Patagonia Gold Plc Edward Marlow Award International plc None Family Foundation Group ESO Uranium Corp. Merfyn Roberts Arc Advisers Limited Beaver Capital Limited Central China Gold Fields PLC Dragon Capital Holdings PLC Country Circle Limited Endeavour Financial Limited Emerald Energy Plc Estelar Resources Plc European Minerals Corp. Resources Investment Trust Plc Global Nickel PLC Match Number Limited Ocean Resources Capital Holdings Plc Rambler Metals and Mining PLC Toledo Mining Corporation Plc Uranium Mines of Canada PLC Harley Hotchkiss Calgary Flames L.P. Triquest Energy Corp Riverbend Farms (Ontario) Ltd. Sebring Energy Inc. Spartan Holdings Ltd. Peter Miles Vancouver Aquarium and Marine Science Centre Glenn Laing Gigantic Petroleums Limited Geoinformatics Exploration Inc. Glass Earth Limited Geoinformatics Exploration GlenFred Holdings Inc. (Australia) Pty Ltd Heritage Explorations Limited Geoinformatics (Ireland) Ltd Jumbo American Petroleum Company Royal Victoria Minerals Ltd Jumbo Development Corporation United Tex-Sol Mines Inc. Misape Management Inc. Mystery Creek Mining Limited Silverbridge Capital Inc. St Andrew Goldfields Limited Ends. This information is provided by RNS The company news service from the London Stock Exchange