23 Oct 2008 10:45
23 October 2008
WEST AFRICAN DIAMONDS PLC
("West African Diamonds" or the "Company")
PLACING ANNOUNCEMENT & NEW DIRECTORS
The board of West African Diamonds (AIM: WAD), is pleased to announce a placing of 15,400,000 new ordinary shares at a price of 10p per share to a consortium of investors. This follows a recent placing of 2,000,000 new ordinary shares at a price of 10p per share.
The aggregate of both placings, 17,400,000 new ordinary shares, represents 29.92 per cent of the enlarged issued share capital of the Company and the new shares rank pari passu in all respects with the existing issued share capital.
Investing in the Company are Audley European Opportunities Master Fund Limited (holding a total of 8,700,000 new ordinary shares representing 14.96% of the enlarged issued share capital) and African Minerals Limited (holding a total of 8,700,000 new ordinary shares representing 14.96% of the enlarged issued). Following the placing the enlarged issue share capital will be 58,150,758 ordinary shares.
While work continues in Sierra Leone, the Company is currently focussing on its operations in Guinea where the bulk of the new equity will be invested. Plant and earthmoving equipment have been transported from Sierra Leone to the Bomboko alluvial diamond project in Guinea where production is scheduled to commence in the next 3 months. A mobile Dense Media Separation (DMS) bulk sampling plant has arrived in Guinea, where over the coming months it will bulk sample kimberlite pipes on our licences. In Sierra Leone, economic assessment of Plant 11 and Plant 6 projects is ongoing as is resource assessment of Pipe 3 and kimberlite dykes in Koidu.
In addition, the Company is pleased to announce that two additional non-executive directors will be appointed, as follows:
Roy Aubrey Pitchford, 58 whose current directorships and partnerships are African Minerals Limited, Pan Palladium Limited, Unity Power plc, Central African Gold plc, Sabi Gold Limited and Lesego Platinum Mine Limited. Mr Pitchford's directorships and partnerships held in the previous five years are African Platinum plc, Zimbabwe Platinum Mines Limited and Lead International (UK) Limited.
Julian Andre Treger, 45 whose current directorships and partnerships are Audley Capital Advisors Limited, Audley Capital Advisors LLP, BNB Resources plc, Blackstar Investors Plc, JAB Limited, Western Canadian Coal Inc. and RM Auctions Inc. Mr Treger's directorships and partnerships held in the previous five years are Illuminator Holdings Limited, Illuminator Investments Limited, JAB Holdings Limited, Purple Capital Limited, The Corporate Services Group plc, Multimedia Trustees Limited, Sage Group Limited, Sage Life Limited and Sage Unit Trusts Limited.
No further information is required to be given in respect of these appointments in compliance with the requirements of paragraph (g), Schedule Two of the AIM Rules.
The new ordinary shares will be issued under the terms of the Company's existing authorities and application has been made for the new ordinary shares to be admitted to AIM. It is expected that dealings in the new ordinary shares will commence from 31 October 2008.
The Company continues to be in discussions with third parties. A further announcement will be made as soon as practicable.
John Teeling, Chairman, commented: "This is a very welcome development for West African Diamonds. There are significant diamond and precious metal opportunities in West Africa. It is a challenging environment but West African Diamonds now has the expertise, experience and cash to develop our existing assets while evaluating other opportunities. I extend a warm welcome to our new directors."
Enquiries:
| West African Diamonds | ||
| John Teeling, Chairman | + 353 1 8332833 | |
| James Campbell, Deputy Chairman | +27 83 457 3724 | |
| Blue Oar Securities Plc John Wakefield | +44 (0) 117 933 0020 | |
| College Hill Paddy Blewer Nick Elwes | +44 (0) 20 7457 2020 +44 (0) 20 7457 2020 | |
This release has been approved by Alex van Zyl, Technical Director, West African Diamonds. Alex van Zyl (B.Sc. Stellenbosch, B.Sc. Hons. Pretoria) spent a long career in Anglo American in the diamond division, ending up 1990 to 1997 with worldwide responsibility for diamond exploration and evaluation. He was a consultant to De Beers from 1997 to 2002.