20th Dec 2006 12:41
Dwyka Diamonds Limited20 December 2006 EXTENSION OF TERM OF SHAREHOLDER LOAN MADE IN CONJUNCTION WITH ISSUE OF SHARES UNDER DWYKA DIAMONDS SHARE PLAN Dwyka Diamonds Limited ("Dwyka" or the "Company") wishes to announce theextension of the term of loans made to employees and some directors("Recipients") in conjunction with the issue to the Recipients of $0.52 sharesin the capital of the Company ("Shares") pursuant to the Dwyka Diamonds SharePlan (approved by shareholders on 28 November 2003). The loans in question wereformerly due to expire on 18 December 2006 and provide that the amount repayableis the lesser of the issue price of the Shares and the last sale price of theShares on the loan repayment date. However, in view of the fact that shares inthe Company are currently trading below the issue price for the Shares, theCompany would suffer a financial loss if the loans were to be repaid on theformer due date. In addition, the Board has considered that if Recipients werecurrently required to repay the loans it would be likely that some or all ofthose Recipients would sell significant numbers of Shares in order to financesuch repayment, with potentially detrimental consequences for the Company'sshare price. Accordingly, the Company and the Recipients have agreed that the loans will nowexpire on 21 December 2008, being the same date as that on which other loansmade to Dwyka personnel in conjunction with issues of shares under the Plan andthe 2005 Dwyka Diamonds Share Plan expire. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Nyota Minerals