13th Jun 2007 07:02
Diamondcorp Plc13 June 2007 Diamondcorp plc ("Diamondcorp", "DCP" or "the Company") Audited Results for the period ended 31 December 2006 Diamondcorp plc (AIM:DCP), the South African diamond mine development andexploration company, releases its audited results for the period ended 31December 2006. Highlights for 2006 - £6.56 million of private equity and convertible debt raised. - Acquisition and decision to proceed with diamond mining operations at the Lace kimberlite project in the Free State province of South Africa. - Design of a 1.6 million tonne per annum dense media separation plant and purchase of mobile mining equipment. - Granting of prospecting rights covering 6,634 hectares of prospective diamond exploration ground surrounding the Lace mine. Post Period Highlights - Successful admission of the Company's shares to AIM in February 2007, raising an additional £2.5 million before costs, and capitalising the Company at £31 million at the listing price of 90 pence per share. - Conversion of all convertible debt to equity. - Refurbishment commences of the existing 360m shaft to enable extraction of a bulk sample from 100m below the depth of any previous workings at the Lace mine. - Construction of dense media separation plant on schedule and on budget for commissioning to commence this month. Chairman's Review This report covers the second year of your company's life - a period of growthin which we raised capital for the development of the Lace diamond mine in SouthAfrica and prepared for the public listing of the shares on the AIM Market ofthe London Stock Exchange. During the year under review a total of £6.56 million of equity and convertibledebt was raised to fund construction of a 1.6 million tonne per annum densemedia separation plant to treat the diamondiferous tailings at Lace. Subsequentto the year end, a further £2.5 million was raised at the time of a successfulIPO on AIM. This public listing of our ordinary shares triggered the conversion of allconvertible debt to equity and, as a result, your company enters thecommissioning phase of the Lace diamond mine with a strong balance sheet and nodebt. Phase 1 development at Lace involves the treatment of a measured and indicated3.6 million tonnes of tailings which have an average grade of 10.3 carats perhundred tonnes (cpht). These tailings will be treated over 27 months and areexpected to yield approximately 370,000 carats of diamonds during this period. Concurrently, the Company will complete feasibility studies on Phase 2 of theLace project which will involve the mining of the remaining hard rockkimberlite, which is estimated to contain in excess of 13.7 million carats ofdiamonds in ore with an estimated average grade of 42.2 cpht. The diamonds fromthe primary pipe have an estimated value of US$125 (£63) per carat, giving theLace project an in-situ value in excess of US$1.7 billion (£850 million) and thepotential to support a 20-year mine life. During the year, your company's 74% owned South African subsidiary Lace DiamondMines (Pty) Limited, was granted prospecting rights totalling 6,634 hectaresover the farms known as Silverbank and Moregroet which adjoin the Lace property.These properties contain several known kimberlite pipes, blows and dykes whichhave not been tested by modern exploration methods. Exploration of these targetsis scheduled to commence once Phase 1 mining at Lace is generating positivecashflow. Lace Diamond Mine's black economic empowerment partners in South Africa areShanduka Resources and Sphere Investments, each of which holds a 13%contributing interest in Lace Diamond Mines. Shanduka is chaired by former tradeunion leader and ANC secretary general Cyril Ramaphosa and has Standard Bank andInvestec as minority shareholders. Sphere was formed by a group of experiencedblack investment banking and private equity professionals and has Nedbank,Sanlam and Rand Merchant Bank as minority shareholders. Diamondcorp is committedto the empowerment objectives of the South African Mineral Development Act, andwill continue to work closely with its partners to ensure that the Lace projectsare developed in a manner which promotes broad-based ownership, employmentequity, procurement, social improvement and product beneficiation whereverpossible to the benefit of historically disadvantaged South Africans. In the year ahead, the directors will investigate other diamond productionopportunities in southern Africa, and will seek a dual listing of the company'sshares on the AltX market of the Johannesburg Stock Exchange. With diamond production scheduled to commence in coming weeks, the year aheadpromises to be an exciting one for Diamondcorp. Euan Worthington Chairman12 June 2007 Chief Executive Officer's Report The year under review covered a significant period in the short history ofDiamondcorp, as it was the year we acquired and committed to the development ofthe Lace diamond mine in the Free State province of South Africa. Following completion of a positive feasibility for Phase 1 tailings re-treatmentat Lace, the Company commissioned Consulmet (Pty) Limited of Johannesburg todesign and construct a 1.6 million tonne per annum dense media separation plant.The plant has been designed to handle 220 tonnes per hour run of mine ore, andutilises a large double scrubbing front end, 100 tph and 65 tph DMS modules, are-crush circuit and state of the art hands free grease belt recovery units tomaximise diamond recovery. The Company purchased its own fleet of Bell mobile mining equipment during theyear and commenced site preparations. Subsequent to the year end, Consulmetcommenced erection of the processing plant, and the site preparation andconstruction of a new tailings and slimes dam were completed. I am pleased to report that under the watchful eye of our South African managingdirector, Mr Alistair Holmes, the plant construction is nearing completionwithin budget and that commissioning will commence on schedule during June. Once the plant reaches design capacity, it is scheduled to produce in excess of12,000 carats of gem diamonds per month for 27 months from re-processing of the3.6 million tonnes of diamondiferous tailings. After an additional 100 tph DMS module and a primary crushing circuit isinstalled, the Lace plant will then have the capacity to process 5,000 tonnesper day of fresh kimberlite during Phase 2 underground mining activities atLace. Before the Company proceeds with Phase 2 development, a bulk test of at least20,000 tonnes of kimberlite will be extracted from the 360m level of the Lacekimberlite, approximately 100m below any previous mining activities. Subsequentto the year end, the Company commenced refurbishment of the existing 360m deep4.6m x 2.7m shaft which was sunk in the late 1920s, but never used for deeperlevel mining due to cessation of mining activities when diamond prices collapsedin 1931. Simultaneous with the tailings re-treatment operation, this shaft will berefurbished to its full depth and allow extraction of the bulk test sample.During commencement of commercial mining activities, it is anticipated that thisshaft will be used as a personnel and ventilation shaft, while a new 5,000 tonneper day ore haulage shaft will be raise-bored. Financial Results The loss for the year was £799,046, compared with £100,473 in the previousperiod. £3.36 million was invested during the year in property plant andequipment at the Lace mine (previous period: nil) and the Group had cashreserves at year end of £2.8 million (previous period: £426,188). Subsequent tothe year end, the Company raised an additional £2.5 million of working capital(before expenses) in conjunction with the admission of the Company's shares totrading on AIM. Paul R. LoudonManaging Director & CEO12 June 2007 CONSOLIDATED INCOME STATEMENTPeriod 16 May 2006 to 31 December 2006 Note 16 May 2006 22 March to 31 2005 to December 15 May 2006 2006 £ £ Administrative expenses (813,191) (102,477) OPERATING LOSS 3 (813,191) (102,477)Investment revenues - interest on bank deposits 14,145 2,004 LOSS BEFORE TAXTax - - 6 (799,046) (100,473) LOSS FOR THE FINANCIAL PERIOD 18 (799,046) (100,473) ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT (799,046) (100,473) All of the activities of the Group are classed as continuing. STATEMENT OF CHANGES IN EQUITYPeriod 16 May 2006 to 31 December 2006 16 May 2006 22 March to 31 2005 to December 15 May GROUP 2006 2006 £ £ Opening balance 6,923,709 -Loss for the financial period (799,046) (100,473)New equity share capital subscribed 367,110 375,002Premium on new equity share capital subscribed 4,529,382 4,004,713Value attributed to warrants granted - 641,667(Conversion)/issuance of loan notes (2,002,800) 2,002,800 Closing balance 9,018,355 6,923,709 COMPANY 16 May 2006 22 March to 31 2005 to December 15 May 2006 2006 £ £ Opening balance 6,923,709 -Loss for the financial period (429,076) (100,473)New equity share capital subscribed 367,110 375,002Premium on new equity share capital subscribed 4,529,382 4,004,713Value attributed to warrants granted - 641,667(Conversion)/issuance of loan notes (2,002,800) 2,002,800 Closing balance 9,388,325 6,923,709 CONSOLIDATED BALANCE SHEET31 December 2006 Note 31 December 15 May 2006 2006 £ £ NON-CURRENT ASSETSGoodwill 8 4,606,026 4,606,026Other intangible assets 8 1,110,530 630,550Property, plant and equipment 9 3,421,081 84,026Other - 9,777 9,137,637 5,330,379 CURRENT ASSETSInventories 12 1,052,000 1,052,000Other receivables 13 259,754 142,654Cash and cash equivalents 2,822,089 426,188 4,133,843 1,620,842 TOTAL ASSETS 13,271,480 6,951,221 CURRENT LIABILITIESConvertible Loan Notes 15 (3,666,000) -Other payables 14 (587,125) (27,512) TOTAL LIABILITIES (4,253,125) (27,512) NET ASSETS 9,018,355 6,923,709 EQUITYShare capital 17 742,112 375,002Share premium account 18 8,534,095 4,004,713Equity reserve 18 - 2,002,800Warrant reserve 18 641,667 641,667Retained losses 18 (899,519) (100,473) TOTAL EQUITY 9,018,355 6,923,709 COMPANY BALANCE SHEET31 December 2006 Note 31 December 15 May 2006 2006 £ £ NON-CURRENT ASSETSInvestments in subsidiaries 10 4,217,500 4,217,500Other intangible assets 8 393,653 300,000Property, plant and equipment (9) 3,322 - 4,614,475 4,517,500 CURRENT ASSETSOther receivables 13 7,412,307 2,059,526Cash and cash equivalents 1,093,058 369,387 8,505,365 2,428,913 TOTAL ASSETS 13,119,840 6,946,413 CURRENT LIABILITIESConvertible Loan Notes 15 (3,666,000) -Other payables 14 (65,515) (22,704) TOTAL LIABILITIES (3,731,515) (22,704) NET ASSETS 9,388,325 6,923,709 EQUITYShare capital 17 742,112 375,002Share premium account 18 8,534,095 4,004,713Equity reserve 18 - 2,002,800Warrant reserve 18 641,667 641,667Retained losses 18 (529,549) (100,473) TOTAL EQUITY 9,388,325 6,923,709 CONSOLIDATED CASH FLOW STATEMENTPeriod 16 May 2006 to 31 December 2006 16 May 2006 22 March to 31 2005 to December 15 May 2006 2006 £ £ Operating loss (813,191) (102,477)Depreciation 29,018 -Increase in receivables (117,100) (85,130)Increase in payables 559,613 22,704 NET CASH USED IN OPERATING ACTIVITIES (341,660) (164,903) INVESTING ACTIVITIESPurchase of other intangible assets and other non-current assets (470,203) -Purchase of property, plant and equipment (3,366,073) -Cash acquired with subsidiary - 56,801Interest received 14,145 2,004Loan to Crown Diamond Mining Limited prior to acquisition - (1,974,394) NET CASH USED IN INVESTING ACTIVITIES (3,822,131) (1,915,589) FINANCING ACTIVITIESProceeds on issue of convertible loan notes 3,666,000 2,449,180Proceeds on issue of ordinary shares 2,893,692 57,500 NET CASH FROM FINANCING ACTIVITIES 6,559,692 2,506,680 NET INCREASE IN CASH AND CASH EQUIVALENTS 2,395,901 426,188 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 426,188 - CASH AND CASH EQUIVALENTS AT END OF PERIOD 2,822,089 426,188 COMPANY CASH FLOW STATEMENTPeriod 16 May 2006 to 31 December 2006 16 May 2006 22 March to 31 2005 to December 15 May 2006 2006 £ £ Operating loss (429,076) (100,473)Increase in receivables (5,352,781) (2,059,526)Increase in payables 42,811 22,704 NET CASH USED IN OPERATING ACTIVITIES (5,739,046) (2,137,295) INVESTING ACTIVITIESPurchase of other intangible assets (93,653) -Purchase of equipment (3,322) - NET CASH USED IN INVESTING ACTIVITIES (96,975) - FINANCING ACTIVITIESProceeds on issue of convertible loan notes 3,666,000 2,449,180Proceeds on issue of ordinary shares 2,893,692 57,502 NET CASH FROM FINANCING ACTIVITIES 6,559,692 2,506,682 NET INCREASE IN CASH AND CASH EQUIVALENTS 723,671 369,387 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 369,387 - CASH AND CASH EQUIVALENTS AT END OF PERIOD 1,093,058 369,387 NOTES TO THE PRELIMINARY ANNOUNCEMENTPeriod 16 May 2006 to 31 December 2006 1. BASIS OF PREPARATION AND ACCOUNTING POLICIES a) General information Diamondcorp plc is a company incorporated in the United Kingdom under theCompanies Act 1985. This preliminary announcement is presented in pounds sterling because this isthe currency of the primary economic environment in which the Group operates. At the date of authorisation of these financial statements, the followingStandards and Intepretations which have not been applied in these financialstatements were in issue but not yet effective: IFRS 7 Financial instruments: disclosures IFRS 8 Operating segments IFRIC 7 Applying the restatement approach under IAS 29 IFRIC 8 Scope of IFRS 2 IFRIC 9 Reassessment of embedded derivatives IFRIC 10 Interim financial reporting and impairment IFRIC 11 IFRS 2: group and treasury share transactions IFRIC 12 Service concession arrangements The directors anticipate that the adoption of these Standards andInterpretations in future periods will have no material impact on the financialstatements of the Group. b) Basis of preparation The financial information set out above does not constitute the Group'sstatutory accounts for the period ended 31 December 2006 or for the period ended15 May 2006 but are derived from those accounts. Statutory accounts for theperiod ended 15 May 2006 have been delivered to the Registrar of Companies. Theauditors have reported on the period ended 31 December 2006 accounts; the reportwas unqualified and did not contain a statement under section 237 (2) or (3) ofthe Companies Act 1985. While the financial information included in this preliminary announcement hasbeen computed in accordance with IFRS as adopted by the European Union, thisannouncement does not in itself contain sufficient information to comply withIFRS as adopted by the EU. The Group expects to publish full financialstatements that comply with IFRS as adopted by the EU in June 2007. c) Basis of consolidation The consolidated financial statements incorporate the financial statements ofthe Company and entities controlled by the Company (its subsidiaries). Controlis achieved where the Company has the power to govern the financial andoperating policies of an investee entity so as to obtain benefits from itsactivities. Minority interests in the net assets of consolidated subsidiaries are identifiedseparately from the Group's equity therein. Minority interests consist of theamount of those interests at the date of the original business combination (seebelow) and the minority's share of changes in equity since the date of thecombination. Losses applicable to the minority in excess of the minority'sinterest in the subsidiary's equity are allocated against the interests of theGroup except to the extent that the minority has a binding obligation and isable to make an additional investment to cover the losses. The results of subsidiaries acquired or disposed of during the period areincluded in the consolidated income statement from the effective date ofacquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements ofsubsidiaries to bring the accounting policies used into line with those used bythe Group. All intra-group transactions, balances, income and expenses are eliminated onconsolidation. 1. BASIS OF PREPARATION AND ACCOUNTING POLICIES (continued) d) Business combinations The acquisition of subsidiaries is accounted for using the purchase method. Thecost of the acquisition is measured at the aggregate of the fair values, at thedate of exchange, of assets given, liabilities incurred or assumed, and equityinstruments issued by the Group in exchange for control of the acquiree, plusany costs directly attributable to the business combination. The acquiree'sidentifiable assets, liabilities and contingent liabilities that meet theconditions for recognition under IFRS 3 "Business Combination" are recognised attheir fair value at the acquisition date, except for non-current assets (ordisposal groups) that are classified as held for resale in accordance with IFRS5 "Non-Current Assets held for Sale and Discontinued Operations" which are notrecognised and measured at fair value less costs to sell. Goodwill arising on acquisition is recognised as an asset and initially measuredat cost, being the excess of the cost of the business combination over theGroup's interest in the net fair value of the identifiable assets, liabilitiesand contingent liabilities recognised. If, after reassessment, the Group'sinterest in the net fair value of the acquiree's identifiable assets,liabilities and contingent liabilities exceeds the cost of the businesscombination, the excess is recognised immediately in profit or loss. The interest of minority shareholders in the acquiree is initially measured atthe minority's proportion of the net fair value of the assets, liabilities andcontingent liabilities recognised. e) Goodwill Goodwill arising on consolidation represents the excess of the cost ofacquisition over the Group's interest in the fair value of the identifiableassets and liabilities of a subsidiary, at the date of acquisition. Goodwill isinitially recognised as an asset at cost and is subsequently measured at costless any accumulated impairment losses. Goodwill which is recognised as an assetis reviewed for impairment at least annually. Any impairment is recognisedimmediately in profit or loss and is not subsequently reversed. For the purpose of impairment testing, goodwill is allocated to each of theGroup's cash-generating units expected to benefit from the synergies of thecombination. Cash-generating units to which goodwill has been allocated aretested for impairment annually, or more frequently when there is an indicationthat the unit may be impaired. If the recoverable amount of the cash-generatingunit is less than the carrying amount of the unit, the impairment loss isallocated first to reduce the carrying amount of any goodwill allocated to theunit and then to the other assets of the unit pro-rata on the basis of thecarrying amount of each asset in the unit. An impairment loss recognised forgoodwill is not reversed in a subsequent period. On disposal of a subsidiary, the attributable amount of goodwill is included inthe determination of the profit or loss on disposal. f) Intangible assets - exploration and evaluation expenditure Exploration and evaluation expenditure comprises costs which are directlyattributable to the acquisition of exploration licenses and subsequentexploration expenditures. Exploration and evaluation expenditure is carried forward as an asset providedthat one of the following conditions is met: (i) Such costs are expected to be recouped in full through successful development and exploration of the area of interest or alternatively, by its sale; (ii) Exploration and evaluation activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence of economically recoverable reserves and active and significant operations in relation to the area are continuing, or planned for the future. Identifiable exploration and evaluation assets acquired are recognised as assetsat their cost of acquisition. An impairment review is performed when facts andcircumstances suggest that the carrying amount of the assets may exceed theirrecoverable amounts. Exploration assets are reassessed on a regular basis andthese costs are carried forward provided that at least one of the conditionsoutlined is met. As at the year end, no amortisation has been charged as theseassets are not yet ready for use in accordance IAS 38. Once they are deemedready for use, it is the Group's intention that intangibles will be amortisedover a period of 20 years being the period for which the mining rights aregranted. Expenditure on research activities is recognised as an expense in the period inwhich it is incurred. 1. BASIS OF PREPARATION AND ACCOUNTING POLICIES (continued) g) Property, plant and equipment Property, plant and equipment is stated at cost less any subsequent accumulateddepreciation and subsequent accumulated impairment losses. Depreciation is charged so as to write off the cost, less estimated residualvalue on assets other than land, over their estimated useful lives, using thereducing balance method once the assets are available for use, on the followingbases: Buildings 4%Fixtures and equipment 20-30% The gain or loss arising on the disposal or retirement of an asset is determinedas the difference between the sales proceeds and the carrying amount of theasset and is recognised in income. h) Impairment of tangible and intangible assets excluding goodwill At each balance sheet date, the Group reviews the carrying amounts of itstangible and intangible assets to determine whether there is any indication thatthose assets have suffered an impairment loss. If any such indication exists,the recoverable amount of the asset is estimated in order to determine theextent of the impairment loss (if any). Where the asset does not generate cashflows that are independent from other assets, the Group estimates therecoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value inuse. In assessing value in use, the estimated future cash flows are discountedto the present value using a pre-tax discount rate that reflects current marketassessments of the time value of money and the risks specific to the asset forwhich the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated tobe less than its carrying amount, the carrying amount of the asset(cash-generating unit) is reduced to its recoverable amount. An impairment lossis recognised as an expense immediately, unless the relevant asset is carried ata re-valued amount, in which case the impairment loss is treated as arevaluation decrease. Where an impairment loss subsequently reverses, the carrying amount of the asset(cash-generating unit) is increased to the revised estimate of its recoverableamount, but so that the increased carrying amount does not exceed the carryingamount that would have been determined had no impairment loss been recognisedfor the asset (cash-generating unit) in prior years. A reversal of an impairmentloss is recognised as income immediately, unless the relevant asset is carriedat a re-valued amount, in which case the reversal of the impairment loss istreated as a revaluation increase. i) Taxation The tax expense represents the sum of the tax currently payable and deferredtax. The tax currently payable is based on taxable losses for the period. Taxableloss differs from net loss as reported in the income statement because itexcludes items of income or expense that are taxable or deductible in otheryears and it further excludes items that are never taxable or deductible. TheGroup's liability for current tax is calculated using tax rates that have beenenacted or substantively enacted by the balance sheet date. Deferred tax is the tax expected to be payable or recoverable on differencesbetween the carrying amounts of assets and liabilities in the financialstatements and the corresponding tax bases used in the computation of taxableprofit, and is accounted for using the balance sheet liability method. Deferredtax liabilities are generally recognised for all taxable temporary differencesand deferred tax assets are recognised to the extent that it is probable thattaxable profits will be available against which deductible temporary differencescan be utilised. Such assets and liabilities are not recognised if the temporarydifferences arise from the initial recognition of goodwill or from the initialrecognition (other than in a business combination) of other assets andliabilities in a transaction that affects neither the tax profit nor theaccounting profit. Deferred tax liabilities are recognised for taxable temporary differencesarising on investments in subsidiaries and associates, and interests in jointventures, except where the Group is able to control the reversal of thetemporary difference and it is probable that the temporary difference will notreverse in the foreseeable future. 1. BASIS OF PREPARATION AND ACCOUNTING POLICIES (continued) i) Taxation (continued) The carrying amount of deferred tax assets is reviewed at each balance sheetdate and reduced to the extent that it is no longer probable that sufficienttaxable profits will be available to allow all or part of the asset to berecovered. Deferred tax is calculated at the tax rates that are expected to apply in theperiod when the liability is settled or the asset is realised. Deferred tax ischarged or credited in the income statement, except when it relates to itemscharged or credited directly to equity, in which case the deferred tax is alsodealt with in equity. Deferred tax assets and liabilities are offset when there is a legallyenforceable right to set off current tax assets against current tax liabilitiesand when they relate to income taxes levied by the same taxation authority andthe Group intends to settle its current tax assets and liabilities on a netbasis. j) Financial instruments Financial assets and financial liabilities are recognised on the Group's balancesheet when the Group becomes a party to the contractual provisions of theinstrument. Trade receivables Trade receivables are measured at initial recognition at fair value, and aresubsequently measured at amortised cost using the effective interest ratemethod. Appropriate allowances for estimated irrecoverable amounts arerecognised in the income statement when there is objective evidence that theasset is impaired. The allowance recognised is measured as the differencebetween the asset's carrying amount and the present value of estimated futurecash flows discounted at the effective interest rate computed at initialrecognition. Cash and cash equivalents Cash and cash equivalents comprises cash in hand and demand deposits, and othershort-term highly liquid investments that are readily convertible to a knownamount of cash and are subject to an insignificant risk of changes in value. Financial liabilities and equity Financial liabilities and equity instruments are classified according to thesubstance of the contractual arrangements entered into. An equity instrument isany contract that evidences a residual interest in the assets of the Group afterdeducting all of its liabilities. Convertible loan notes Convertible loan notes are regarded as compound instruments, consisting of aliability component and an equity component. At the date of issue, the fairvalue of the liability component is estimated using the prevailing marketinterest rate for similar non-convertible debt. The difference between theproceeds of issue of the convertible loan notes and the fair value assigned tothe liability component, representing the embedded option to convert theliability into equity of the Group, is included in equity. Issue costs are apportioned between the liability and equity components of theconvertible loan notes based on their relative carrying amounts at the date ofissue. The portion relating to the equity component is charged directly againstequity. The interest expense on the liability component is calculated by applying theprevailing market interest rate for similar non-convertible debt to theliability component of the instrument. The difference between this amount andthe interest paid is added to the carrying amount of the convertible loan note. Trade payables Trade payables are initially measured at fair value, and are subsequentlymeasured at amortised cost, using the effective interest rate method. Equity instruments Equity instruments issued by the Company are recorded at the proceeds received,net of direct issue costs. 1. BASIS OF PREPARATION AND ACCOUNTING POLICIES (continued) k) Foreign currencies The individual financial statements of each group company are presented in thecurrency of the primary economic environment in which it operates (itsfunctional currency). For the purpose of the consolidated financial statements,the results and financial position of each group company are expressed in poundssterling, which is the functional currency of the Company, and the presentationcurrency for the consolidated financial statements. In preparing the financial statements of the individual entities, transactionsin currencies other than the entity's functional currency (foreign currencies)are recorded at the rates of exchange prevailing on the dates of thetransactions. At each balance sheet date, monetary assets and liabilities thatare denominated in foreign currencies are retranslated at the rates prevailingon the balance sheet date. Non-monetary items carried at fair value that aredenominated in foreign currencies are retranslated at the rates prevailing onthe date when the fair value was determined. Non-monetary items that aremeasured in terms of historical cost in a foreign currency are not translated. Exchange differences arising on the settlement of monetary items, and on theretranslation of monetary items, are included in profit or loss for the period.Exchange differences arising on the retranslation of non-monetary items carriedat fair value are included in the income statement for the period except fordifferences arising on the retranslation of non-monetary items in respect ofwhich gains and losses are recognised directly in equity. For such non-monetaryitems, any exchange component of that gain or loss is also recognised directlyin equity. For the purpose of presenting consolidated financial statements, the assets andliabilities of the Group's foreign operations are translated at exchange ratesprevailing on the balance sheet date. Income and expense items are translated atthe average exchange rates for the period, unless exchange rates fluctuatedsignificantly during that period, in which case the exchange rates at the datesof the transactions are used. Exchange differences arising, if any, areclassified as equity and transferred to the Group's translation reserve. Suchtranslation differences are recognised in the income statement in the period inwhich the foreign operation is disposed of. Goodwill and fair value adjustments arising on the acquisition of a foreignentity are treated as assets and liabilities of the foreign entity andtranslated at the closing rate. l) Restoration, rehabilitation and environmental costs An obligation to incur restoration, rehabilitation and environmental costsarises when environmental disturbance is caused by the development or ongoingproduction of a mining property. Such costs arising from the installation ofplant and other site preparation work, discounted to their net present value,are provided for and capitalised at the start of each project, as soon as theobligation to incur such costs arises. These costs are charged against profitsover the life of the operation, through the depreciation of the asset and theunwinding of the discount on the provision. Costs for restoration of subsequentsite damage which is created on an ongoing basis during production are providedfor at their net present values and charged against profits as extractionprogresses. Changes in the measurement of a liability relating to the decommissioning ofplant or other site preparation work that result from changes in the estimatedtiming or amount of the cash flow, or a change in the discount rate, are addedto, or deducted from, the cost of the related asset in the current period. If adecrease in the liability exceeds the carrying amount of the asset, the excessis recognised immediately in the income statement. If the asset value isincreased and there is an indication that the revised carrying value is notrecoverable, an impairment test is performed in accordance with the accountingpolicy above. 1. BASIS OF PREPARATION AND ACCOUNTING POLICIES (continued) m) Inventories Inventory and work in progress are valued at the lower of cost and netrealisable value. Inventories are valued at £2.84 per carat based on an in situ valuationequivalent to 8% of the market value of US$63 per carat achieved at a sale ofLace project diamonds in May 2005. The number of carats in inventory (370,285carats) was based on an expert determination provided to the company by aqualified external valuer. n) Revenue Interest income is accrued on a time basis, by reference to the principaloutstanding and at the effective interest rate applicable, which is the ratethat exactly discounts estimated future cash receipts through the expected lifeof the financial asset to that asset's net carrying value. o) Critical accounting judgements In the process of applying the Group's accounting policies, which are describedabove, the directors have made the following judgements that have the mostsignificant effect on the amounts recognised in the financial information. - Valuation of inventory - see accounting policy m) above and note 12.- Valuation of warrants issued as consideration - see notes 17 and 18. 2. BUSINESS AND GEOGRAPHICAL SEGMENTS For management purposes, the Group has one operating division - diamond miningand exploration in the Republic of South Africa. 3. OPERATING LOSS 16 May 2006 22 March to 31 2005 to December 15 May 2006 2006 £ £Operating loss is after chargingAuditors' remuneration- as auditors (see below) 45,000 20,000Foreign exchange losses 22,494 -Depreciation 29,018 - 3. OPERATING LOSS (continued) The analysis of auditors' remuneration is as follows: 16 May 2006 22 March to 31 2005 to December 15 May 2006 2006 £ £ Fees payable to the company's auditors for the audit of company'saccounts 25,000 20,000 The audit of the Company's subsidiary* 20,000 - Total audit fees 45,000 20,000 Corporate finance services 120,000 - Total non-audit fees 120,000 - * Nkonki Inc performed the audit of Lace Diamond Mines (Pty) Limited. 4. STAFF COSTS During the period from 16 May 2006 to 31 December 2006, the Group incurred staffcosts of £107,409 and the Company £65,545. The average number of employees ofthe Group, excluding directors, was 7 and of the Company, 3. (Neither the Group,nor the Company incurred any staff costs or employed any employees during theperiod ended 15 May 2006.) 5. DIRECTORS' EMOLUMENTS Remuneration for the period 16 May 2006 to 31 December 2006 Fees paid Salary or to third fee party Total Options £ £ £ granted * E A Worthington 12,500 3,833 16,333 -J Willis-Richards (1) - - - -R N Allen - - - -P R Loudon 45,000 30,000 75,000 - 57,500 33,833 91,333 - * The following options were granted on 25 January 2007 E A Worthington 370,000;J Willis-Richards 280,000; R N Allen 280,000 and P R Loudon 690,000. 5. DIRECTORS' EMOLUMENTS (continued) Remuneration for the period 22 March 2005 to 15 May 2006 Salary or fee £ R N Allen -P R Loudon 12,000 12,000 (1) Includes amounts paid to Loeb Aron & Company Limited where Mr.Willis-Richards is a director The directors received no pension contributions or benefits in kind. 6. TAX 16 May 2006 22 March to 31 2005 to 15 December May 2006 2006 £ £ Current tax - -Deferred tax - - Tax expense for the period - - Until it is probable that sufficient taxable profits will be available to allowall or partial recovery of the deferred tax asset of £269,856 (period ended 15May 2006 £30,142), the accounting benefit will not be reflected in the accounts. The charge for the period can be reconciled to the loss per the income statementas follows: 16 May 2006 22 March to 31 2005 to December 15 May 2006 2006 £ £ Loss for the period (799,046) (100,473) Tax at the UK corporation tax rate of 30% (239,714) (30,142)Tax losses carried forward 239,714 30,142 Tax expense for the period - - 7. LOSS ATTRIBUTABLE TO MEMBERS OF THE PARENT COMPANY The loss for the financial period dealt with in the financial statements of theparent company was £429,076 (22 March 2005 to 15 May 2006 - £100,473). Aspermitted by s230 of the Companies Act 1985, no separate income statement ispresented in respect of the parent company. 8. INTANGIBLE FIXED ASSETS MineralGroup development Goodwill rights Total £ £ £Cost and carrying amountAt 16 May 2006 4,606,026 630,550 5,236,576Additions - 479,980 479,980 At 31 December 2006 4,606,026 1,110,530 5,716,556 Company Cost and carrying amountAt 16 May 2006 - 300,000 300,000Additions - 93,653 93,653 At 31 December 2006 - 393,653 393,653 MineralGroup development Goodwill rights Total £ £ £Cost and carrying amountAt 22 March 2005 - - -Acquisition of subsidiary 4,606,026 330,550 4,936,576Additions - 300,000 300,000 At 31 D15 Mayecember 2006 4,606,026 630,550 5,236,576 Company Cost and carrying amountAt 22 March 2005 - - -Additions - 300,000 300,000 At 31 D15 Mayecember 2006 - 300,000 300,000 On 15 May 2006, the company acquired 100 percent of the issued share capital ofCrown Diamond Mining Limited. This acquisition is detailed in note 11 to thefinancial statements. The Group has been granted "New Order Prospecting Rights" in respect of twoproperties in the Free State of the Republic of South Africa: (i) Ruby 691 Farm, which covers an area of 1,180.6 hectares and in which is situated the historical workings of the Lace diamond mine; and (ii) Silverbank Farm, which covers an area of 4,407.6 hectares. In addition, the Group purchased the surface rights to Subdivision 1 of Ruby 691Farm which is 108.2 hectares in area (note 11). 8. INTANGIBLE FIXED ASSETS (continued) On 15 May 2006, the company issued 1,000,000 ordinary shares of 1 pence each toeach of Shanduka Resources (Pty) Limited and Sphere Holdings (Pty) Limited witha fair value of £300,000 to settle a success fee payable on the transfer of aprospecting right to Lace Diamond Mines (Pty) Limited. The Group tests annually for impairment of goodwill. The recoverable amounts ofcash generating units ("CGU") are determined from value in use calculations.The key assumptions for the value in use calculations are those regarding thediscount rates, growth rates and expected changes to selling prices and directcosts during the period. Management estimates discount rates using pre-taxrates that reflect current market assessments of the time value of money and therisks specific to the CGUs. The growth rates and selling prices are based oninformation in the competent persons report. Having prepared impairment testing, no impairment has been identified, andtherefore no impairment loss has been recognised in either year. 9. PROPERTY PLANT AND EQUIPMENT Fixtures Group Mining and Plant equipment Vehicles Land Buildings equipment Total £ £ £ £ £ £ £CostAt 16 May 2006 - - 9,284 50,195 21,512 3,035 84,026Additions during period 2,655,794 672,581 26,767 - 1,777 9,154 3,366,073 At 31 December 2006 2,655,794 672,581 36,051 50,195 23,289 12,189 3,450,099 Accumulated depreciationCharge for the period andat 31 December 2006 - (25,953) (2,104) - (242) (719) (29,018) Carrying amountAt 31 December 2006 2,655,794 646,628 33,947 50,195 23,047 11,470 3,421,081 Fixtures Mining and Plant equipment Vehicles Land Buildings equipment Total £ £ £ £ £ £ £Cost and carrying amountAt 22 March 2005 - - - - - - -Additions during period - - 9,284 50,195 21,512 3,035 84,026 At 15 May 2006 - - 9,284 50,195 21,512 3,035 84,026 Company Shortly before the period end a total of £3,322 of fixtures and equipment waspurchased. No depreciation was charged in the period, therefore the net bookvalue as at 31 December 2006 was equal to cost. 10. INVESTMENT IN SUBSIDIARIES Company £ Cost and carrying amountAt 16 May 2006 and 31 December 2006 4,217,500 Company £ Cost and carrying amountAt 22 March 2005 -Additions 4,217,500 At 15 March 2006 4,217,500 The investment represents 100% per cent of the share capital of Crown DiamondMining Limited (CDM) which was acquired on 15 May 2006. CDM is a company isregistered in the British Virgin Islands. For a list of subsidiaries, please refer to note 19. 11. ACQUISITION OF SUBSIDIARIES On 15 May 2006, the company acquired 100 percent of the issued share capital ofCrown Diamond Mining Limited ("CDM"). The consideration included 25,000,000ordinary shares of 1 penny each in Diamondcorp plc and 12,500,000 warrants tosubscribe for ordinary shares of 1 penny each in respect of which certificateswere issued on 30 June 2006. CDM and its 74% owned subsidiary, Lace DiamondMines (Pty) Limited ("Lace"), are involved in diamond exploration andexploitation in South Africa. The transaction has been accounted for by thepurchase method of accounting. Net liabilities acquired were as follows Book and provisional fair value 15 May 2006 £ Intangible fixed assets 330,550Inventories 1,052,000Property, plant and equipment 84,026Other assets 9,777Cash and cash equivalents 56,801Other receivables 57,522Amount payable to Diamondcorp Plc (1,974,394)Other payables (4,808) Net liabilities acquired (388,526)Goodwill arising on acquisition 4,606,026 Total consideration 4,217,500 Satisfied by:Issue of ordinary shares 3,750,000Warrants to be issued over ordinary shares 467,500 4,217,500 11. ACQUISITION OF SUBSIDIARIES (continued) The fair value of the warrants over ordinary shares was determined by thedirectors utilising the Black-Scholes pricing model, with the key assumptionsdisclosed in note 18. The fair value of the ordinary shares issued wasdetermined by the directors to be 15 pence per ordinary share (45 pence perordinary share post share consolidation - see note 17). The directors basedtheir estimate of the fair value of the ordinary shares on the enterprise valueof the business adjusted for a discount factor of 50% to reflectnon-marketability of the shares at the date of issue. In the period from incorporation on 23 March 2005 to 15 May 2006 CDM recordedrevenue of £nil and a loss before and after tax of £224,676. CDM contributed£nil revenue and £nil to the Group's loss before tax for the period between thedate of acquisition and 15 May 2006. In the period from incorporation on 15March 2005 to 15 May 2006 Lace recorded revenue of £nil and a loss before andafter tax of £149,392. Lace contributed £nil revenue and £nil to the Group'sloss before tax for the period between the date of acquisition and 15 May 2006. 12. INVENTORIES 31 December 15 May 2006 2006 £ £ Work in progress 1,052,000 1,052,000 Inventories are valued at £2.84 per carat based on an in situ valuationequivalent to 8% of the market value of US$63 per carat achieved at a sale ofLace project diamonds in May 2005. The number of carats in inventory (370,285carats) was based on an expert determination provided to the company by aqualified external valuer. 13. OTHER RECEIVABLES Group Company 31 31 December 15 May December 15 May 2006 2006 2006 2006 £ £ £ £ Receivables due from group undertakings - - 7,410,469 1,974,394Prepayments and other receivables 259,754 142,654 1,838 85,132 259,754 142,654 7,412,307 2,059,526 The directors consider that the carrying amount of these assets approximatestheir fair value. All other receivables balances are non-interest Bearing. 14. OTHER PAYABLES Group Company 31 31 December 15 May December 15 May 2006 2006 2006 2006 £ £ £ £ Accruals and deferred income 587,125 27,512 65,512 22,704 The directors consider that the carrying amount of these liabilitiesapproximates their fair value. All other payables are non-interest bearing. 15. CONVERTIBLE LOAN NOTE At 31 December 2006, a convertible loan note of £3,900,000 is on issue.Commission of 6 % paid in respect of the placement has been netted against theprincipal balance. The note converts automatically into ordinary shares of the Company attwo-thirds of the placing price upon admission of the Company to the AIM market.After 1 May 2007, the Conversion Price will be reduced by 8% for each calendarmonth until such time as the Company has been successful with the Admission,subject to a maximum discount of 50% to the IPO Price and mutual agreement withthe note holder. The note is secured by a general floating charge over theassets of Diamondcorp plc. The note is interest free until 1 May 2007.Thereafter, the note will bear interest at the rate of 15 per cent per annum,calculated monthly (on the basis of a 360 day year) and payable in cash monthlyin arrears, until it is converted or redeemed. By mutual agreement between the Company and the note holder, the Company mayredeem the loan note at any time by the payment in cash of the principal amountplus 50% and any accrued and outstanding interest. Redemption of the note after1 May 2007, shall incur an additional redemption sum of 6.75% of the principalpayable for each calendar month between May and November 2007. The note shallbe transferable to an affiliate of the note holder or, with the consent of theCompany (such consent not to be unreasonably withheld or delayed), to any otherperson. The note contains a condition that, if the Company has not completed an IPO orredeemed the note by 1 November 2007, the Company shall immediately redeem thenote by the payment in cash of the principal amount plus 50% and any accrued andoutstanding interest, plus an additional redemption sum of 6.75% of theprincipal payable for each calendar month between 1 May 2007 and 1 November2007, eg commencing in June 2007. The Company was admitted to AIM on 1 February 2007 and the note was converted to6,500,000 ordinary shares of 3 pence each at a conversion price of 60 pencebeing two-thirds of the 90 pence placing that occurred simultaneously withadmission to AIM (refer to Note 22). 16. RELATED PARTY TRANSACTIONS The directors consider that there is no ultimate controlling party of theCompany. Transactions between the Company and its subsidiaries, which arerelated parties of the Company, have been eliminated on consolidation and arenot disclosed in this note. Details of transactions between the Group and other related parties aredisclosed below. During the period from 16 May 2006 to 31 December 2006: (i) Diamondcorp plc incurred legal fees of £64,000 (22 March 2005 to 15 May 2006 - £35,880) from Cobbetts, company secretary of Diamondcorp plc; and (ii) Diamondcorp plc incurred corporate advisory fees of £3,000 (22 March 2005 to 15 May 2006 - £27,667) and commissions of £45,972 (22 March 2005 to 15 May 2006 - £156,300) from Loeb Aron & Company Limited ("Loeb Aron"), a company of which both P R Loudon and J Willis-Richards are directors and a company which owns more than 3% of the issued shares. In addition, in reference to fundraisings completed by Loeb Aron, Loeb Aron was granted a warrant to purchase 750,000 shares for a period of two years from the date of admission to the AIM market, exercisable at 35 pence per ordinary share (250,000 warrants to purchase ordinary shares at 105 pence per share following the share consolidation - notes 17 and 18). In addition, during the period from 22 March 2005 to 15 May 2006: (i) Lace incurred legal fees of £13,965 from Werksmans, former company secretary of Lace; and (ii) Lace incurred consulting fees of £73,875 from The Mineral Corporation, a company in which G Robbertze, a director of Lace, is a principal. The only transactions between the Company and its subsidiaries relate to fundsloaned to Crown Diamond Mining Limited and Lace Diamond Mines (Pty) Limited.The debtor balances with these two subsidiaries are as follows: 31 December 15 May 2006 2006 £ £ Amounts due from Crown Diamond Mining Limited 7,393,342 -Amounts due from Lace Diamond Mines (Pty) Limited 17,127 - 17. SHARE CAPITAL 31 December 15 May 2006 2006 £ £Authorised share capital500,000,000 ordinary shares of 1 penny each 5,000,000 5,000,000 No. £ No. £Called up, allotted and fully paidOrdinary shares of 1 penny each 24,737,073 742,112 37,500,200 375,002 On 30 June 2006 every three ordinary shares of 1 pence each were consolidatedinto one ordinary share of 3 pence with no other change in the rights attachedto the ordinary shares. On 16 September 2006 the 2,130,000 Convertible Loan Notes were converted to7,100,006 ordinary shares of 3 pence each at a price of 30 pence per share. On 16 September 2006 the Company issued 3,815,000 ordinary shares of 3 penceeach in respect of a private placement completed at 60 pence per ordinary share. On 27 October 2006 the Company issued a secured convertible loan note in thetotal amount of £3,900,000 to Aktiva Diversified Holdings Limited. The securedconvertible loan note automatically converts into ordinary shares on admissionto AIM at a conversion price equal to the lower of 60 pence or two thirds of thePlacing Price per ordinary share. On 24 November 2006 the Company issued 1,322,000 ordinary shares of 3 pence eachin respect of a private placement completed at 60 pence per ordinary share. 18. RESERVES Group Share Warrant Equity premium Retained reserve reserve account losses £ £ £ £ At 15 May 2006 641,667 2,002,800 4,004,713 (100,473)Loss for the period - - - (799,046)Premium arising on issue of equity shares - - 4,717,890 -Issue of warrants over ordinary shares - (2,002,800) - -Issue costs - - (188,508) - At 31 December 2006 641,667 - 8,534,095 (899,519) Company Share Warrant Equity premium Retained reserve reserve account losses £ £ £ £ At 15 May 2006 641,667 2,002,800 4,004,713 (100,473)Loss for the period - - - (429,076)Premium arising on issue of equity shares - - 4,717,890 -Issue of warrants over ordinary shares - (2,002,800) - -Issue costs - - (188,508) - At 31 December 2006 641,667 - 8,534,095 (529,549) 18. RESERVES (continued) Group and Company Share Warrant Equity premium Retained reserve reserve account losses £ £ £ £ At 22 March 2005 - - - -Loss for the period - - - (100,473)Premium arising on issue of equity shares - - 4,033,333 -Equity element of convertible loan notes - 2,130,000 - -Issue of warrants over ordinary shares 641,667 - - -Issue costs - (127,200) (28,620) - At 15 May 2006 641,667 2,002,800 4,004,713 (100,473) Warrant reserve Group and Company Warrants in Warrant issue reserve Number £ At 16 May 2006 and 31 December 2006 18,000,000 641,667 Warrants in Warrant issue reserve Number £ At 22 March 2005 - -Issue of loan note warrants 4,750,000 174,167Vendor warrants to be issued 12,500,000 463,800Loeb Aron warrants to be issued 750,000 3,700 At 15 May 2006 18,000,000 641,667 Valuation Warrants granted during the period from 22 March 2005 to 15 May 2006 were valuedby the directors using the Black-Scholes valuation model, based upon thefollowing assumptions: - Term range of one to three 1/2 years - Expected dividend yield of nil - Risk free interest rate of 5% - Share price volatility of 55% - Current share price of 15 pence (45 pence post share consolidation). The number of warrants, warrant exercise prices and nominal share valuesreferred to below reflect the share structure prior to the share consolidationwhich occurred on 30 June 2006. Following the share consolidation, all warrantexercise prices and nominal share values increased by a factor of three. Thenumber of warrants reduces by a factor of three. 18. RESERVES (continued) Loan note warrants The holders of convertible loan notes which were converted into 4,750,000ordinary shares of 1 penny each on 21 December 2005, were entitled to be issued,on conversion, with a total of 4,750,000 warrants to subscribe for ordinaryshares of 1 penny each at the lower of 60 pence per share or price at which theCompany issued ordinary shares of 1 penny each on admission to the AIM market.The exercise price was reduced to 10 pence per ordinary share when admission didnot take place prior to 30 April 2006. These warrants expire on 30 April 2008.Certificates in relation to these warrants were issued on 30 June 2006 followingand taking into account, the consolidation of the company's share capital onthat date. Vendor warrants The vendors of Crown Diamond Mining Limited were entitled to be issued oncompletion of the sale of its ordinary share capital to the Company with a totalof 12,500,000 warrants to subscribe for ordinary shares of 1 penny each at aprice of the lower of 60 pence or price at which the Company raises equityfinance on admission to the AIM market. These warrants expire on that datewhich is five years from the date of admission to the AIM market. Certificatesin relation to these warrants were issued on 30 June 2006 following and takinginto account, the consolidation of the company's share capital on that date. Other warrants In reference to work performed on fundraisings by Loeb Aron, Loeb Aron areentitled to be issued on admission to the AIM market warrants over 250,000ordinary shares of 3 pence each for a period of two years from the date ofadmission to the AIM market, exercisable at 105 pence per share. Equity reserve - convertible loan notes At 15 May 2006, £2,130,000 of convertible loan notes were in issue. They wereunsecured, non-interest bearing and had no redemption rights. The notesconverted automatically into ordinary shares of the Company upon admission ofthe Company to the AIM market at two thirds of the placing price, if thisoccurred on or before 16 September 2006. If the company had not been admitted tothe AIM market by 16 September 2006 they would have automatically converted toordinary shares at a rate of 10 pence per ordinary share on that date. At 15 May 2006, the directors estimated that the fair value of the liabilitycomponent of the convertible loan notes was nil. This fair value was calculatedby discounting the future cash flows at the market rate. The proceeds from theissue of the convertible loan notes were therefore allocated entirely to theequity component, representing the fair value of the embedded option to convertthe liability into equity of the Group. On 16 September 2006 the 2,130,000 Convertible Loan Notes were converted to7,100,006 ordinary shares of 3 pence each at a price of 30 pence per share. Theconversion price of 30 pence per share reflects the one for three shareconsolidation on 30 June 2006. (see note 17) 19. SUBSIDIARIES Details of the Company's subsidiaries at 31 December 2006 were as follows: Place of Proportion of Proportion of incorporation (or ownership voting power registration) and interest heldName of subsidiary operation % % Principal activity Crown Diamond British Virgin Islands 100 100 Holding companyMining Limited Lace Diamond Mines (Pty) Republic of 74 100 Diamond exploration andLimited South Africa exploitation Soapstone Investments (Pty) Republic of 100 100 Investment companyLimited South Africa Soapstone Investments (Pty) Limited was incorporated on 30 November 2006 and wasset up as an investment company in South Africa. 20. FINANCIAL INSTRUMENTS Financial assets The Group's principal financial assets are bank balances and cash and otherreceivables. Credit risk The Group has no significant concentration of credit risk. Bank and cash balances Bank and cash balances comprise cash held by the Group and short term bankdeposits with an original maturity of three months or less. The carrying amountof these assets approximates their fair value. A breakdown of bank and cashbalances by currency is as follows: 31 December 15 May 2006 2006 £ £ Sterling 812,195 369,387South African Rand 2,009,894 56,801 2,822,089 426,188 21. COMMITMENT The Group's commitment to construct a plant at Lace mine is approximately£3,506,000 (ZAR 47,336,000). Of this amount, approximately £1,254,170 (ZAR17,335,000) has not been paid at 31 December 2006 22. POST BALANCE SHEET EVENTS On 24 January 2007 the Company changed its accounting reference date to 31December. On 1 February 2007 the Company was admitted to the AIM market and simultaneouslyissued 2,750,000 ordinary shares at 90 pence each. In accordance with the termsof the Convertible Loan Notes, on the date of admission the notes converted to6,500,000 ordinary shares (see Note 15). Since 31 December 2006, 33,332 warrants have been exercised for proceeds of£10,000 and the same number of ordinary shares has been issued. In May 2007, Crown Diamond Mining Limited changed its name to DiamondcorpHoldings Limited. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
DCP.L