19th Oct 2006 10:05
Dwyka Diamonds Limited19 October 2006 Dwyka and Kolong complete BEE restructure Dwyka Diamonds Limited ("Dwyka" or "the Company"), the AIM and ASX quoteddiamond developer and producer, today announces that the final implementationphase of the BEE restructure of its South African operations has now been fullycompleted, with partner Kolong Investment Holdings (Pty) Limited ("Kolong"). The restructure sees Kolong move to 30% ownership of all South Africa assets inDwyka's portfolio, effected via a share exchange whereby Dwyka moves to 70%ownership of the De Beers Tailings Retreatment Project ("DBTR"), in exchange forgiving Kolong a total effective interest of 30% in its other projects andoperations, which comprise the Kimberley-based Industrial Products businesses,the prospective Bosele diamond fissure project and the Blaauwbosch, Newlands andNew Elands underground kimberlite mines. The transaction occurs at a time when underground production from Newlands andBlaauwbosch is ramping up and throughput is rising consistently at the De BeersTailings Retreatment Project. As a result of the transaction all Dwyka's South African assets are now fullyBEE-compliant, with the result that Dwyka: - can proceed to conversion of all "old order" mining rights to "new order" rights as contemplated under applicable South African legislation; - can maximise development of its existing projects and operations; - is now placed in a strong position to secure further opportunities in South Africa; and - will, as regards its Industrial Products division, be viewed as a "preferred" supplier to South African mining companies and in relation to tendering and procurement with government. Ownership of Dwyka's South African projects and operations has now beenconsolidated beneath new South African subsidiary Superkolong Holdings (Pty) Ltd("Superkolong Holdings"), in which Dwyka has a 70% shareholding and Kolong holds30%. Those projects and operations have also been streamlined into separatemining, processing and industrial divisions (each headed by a dedicated Dwykasubsidiary that is 100% owned by Superkolong Holdings), in order to maximiseefficiencies and simplify dealings with third parties. Speaking today in relation to the restructured Dwyka Group, Melissa Sturgess,Dwyka's Chairman, said: "We are now in the position of being able to take fulladvantage of the recent South African BEE reforms and to maximise development ofour projects and operations. We are excited by the opportunities that thisrestructure affords and look forward to working closely with Kolong to furtherdevelop our South African operations into a profitable, high-growth business." Kolong's Chairman, Julius Mongwaketse, today commented: "This transaction is ademonstration of the commitment of both Companies to increasing our exposure todiamond development and production in South Africa. Together, we have built asolid foundation for future growth and we look forward to the opportunities thatour partnership affords in maximising value for the shareholders of bothCompanies." For further information please contact: In Australia Adrian Griffin/ Melissa Sturgess Dwyka Diamonds Limited (+618) 9324 2955 In United Kingdom Richard Brown Ambrian Parnters Limited (+44) 20 7776 6417 Laurence Read/ Leesa Peters Conduit PR (+44) 20 7429 6605/ (+44) 7979 955 923 Or visit http://www.dwykadiamonds.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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