5th Oct 2005 10:59
Firestone Diamonds PLC05 October 2005 Firestone Diamonds plc Acquisition of interest in African Diamonds plc 5 October 2005 Firestone Diamonds plc ("Firestone Diamonds" or the "Company") today announcesthat it has entered into an agreement to acquire a total of 4,879,220 ordinaryshares in African Diamonds plc ("African Diamonds"), representing approximately7.28% of the issued share capital of African Diamonds. The shares in African Diamonds are being acquired in exchange for new ordinaryshares in Firestone Diamonds, on the basis of one new ordinary share inFirestone Diamonds for each 2.6 ordinary shares in African Diamonds. On 4October 2005, the respective closing mid-market prices for Firestone Diamondsand African Diamonds were 146p and 54p, respectively, giving a relative ratio of2.7. The Company regards the acquisition as a strategic investment and does notintend to make an offer for African Diamonds. For further information: Philip Kenny, Firestone Diamonds +44 20 8834 1028 / +44 7831 324 645 Leesa Peters, Conduit PR +44 20 7618 8760 / +44 7812 159 885 Jamie Cumming, Bell Lawrie +44 141 314 8103 / +44 7768 044 620 Website: www.firestonediamonds.com Background information: Firestone Diamonds plc is an international diamond mining and explorationcompany with operations in the Namaqualand region of South Africa, Botswana andthe United States. Firestone has extensive interests in Botswana, which is the world's largestproducer of diamonds, with annual production of approximately 30 million caratsworth over $2.5 billion. Botswana is considered to be one of the best countriesin the world to explore for kimberlite - the primary source rock for diamonds.Firestone's Mopipi, Orapa and Jwaneng projects are located close to the majorOrapa and Jwaneng mines and are all being explored by De Beers in joint venturewith Firestone. Firestone is also exploring for kimberlite in the US on theLaurentia craton, which extends into Canada, where it hosts a number ofdiamondiferous kimberlite deposits. Namaqualand, which is located on the west coast of South Africa, has been one ofthe world's largest alluvial diamond producing regions for the past 60 years,with total production to date estimated to be worth more than $3 billion.Firestone's mining operations in Namaqualand include the Bonte Koe, Avontuur andOena Mines, all of which produce high quality alluvial diamonds, and a growingportfolio of early stage and advanced exploration projects, of which the GroenRiver Valley project is the most important. Firestone has a highly qualified management team with extensive experience inthe exploration, evaluation and development of diamond projects. Firestone isquoted on the Alternative Investment Market (AIM) of the London Stock Exchangeand trades under the symbol FDI.L. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
FDI.L