23 Oct 2008 10:45
23 October 2008
African Minerals Limited
("African Minerals" or the "Company")
Strategic Investment
African Minerals Limited (AIM:AMI), the mineral exploration company with significant interests in Sierra Leone, West Africa, is pleased to announce that it has made a strategic investment of £870,000 in West African Diamonds plc ("WAD"), an AIM-listed company, in return for 8,700,000 ordinary shares in WAD representing 14.96% of the enlarged issued share capital. The Company's investment in WAD has been made with funds that were available to the business before the placing announced on 10 October 2008.
Audley European Opportunities Master Fund Limited is also investing a similar amount in WAD. African Minerals' investment is intended to provide a basis for a potential strategic alliance to develop a fully-integrated diamond business incorporating both up-stream and down-stream operations, with a view to maximising the value of the Company's diamond assets and enhancing African Minerals' shareholder value. No public offer by African Minerals for WAD's securities is envisaged. Further announcements will be made as appropriate.
WAD is a diamond focused explorer with operations in Sierra Leone and Guinea and holds a portfolio of development and advanced exploration assets across West Africa. West Africa produces some of the highest value diamonds in the world.
Roy Pitchford, Chief Executive Officer of African Minerals, is to be appointed to the board of WAD as a non-executive director.
Enquiries:
| African Minerals Limited | Tel: +44 (0) 20 7849 3002 | ||
| Frank Timis |
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| Roy Pitchford |
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| Canaccord Adams Limited | Tel: +44 (0) 20 7050 6500 | ||
| Mike Jones |
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| Mirabaud Securities Limited | Tel: +44 (0) 20 7878 3360 | ||
| Rory Scott |
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| Citigate Dewe Rogerson | Tel: +44 (0) 20 7638 9571 | ||
| Martin Jackson |
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| George Cazenove |