25th Oct 2007 07:00
Diamondcorp Plc25 October 2007 DIAMONDCORP PLC (AIM:DCP) RESTORATION OF TRADING 25 October 2007 On 15 August 2007, DiamondCorp plc ("DiamondCorp" or the "Company") announcedthat it had entered into an option to acquire Sonop Diamond Mining (Pty) Limited("Sonop"). Due to plant commissioning delays at Sonop, it has become evidentthat Sonop will not meet the revenue and operating profit targets in the nearterm that formed a condition of the option. Accordingly, DiamondCorp has reacheda mutual agreement with Mr C. F. Potgieter to terminate the option andDiamondCorp will not be required to pay the Option Fee of US$2 million and 1.25million ordinary shares of 3p each. DiamondCorp will continue to evaluate the Sonop assets as part of its ongoingprogramme to expand its diamond production base in South Africa. As a result of the termination of the option, DiamondCorp has requested thattrading in its ordinary shares on AIM be restored. For further information, please contact: Paul LoudonManaging Director & CEO, DiamondCorp plc+44 20 7256 2651 Jane Stacey/Arabella HobbsConduit PR+44 20 7429 6606/+44 792 292 3306 Joe Nally/Ivonne CantuCenkos Securities plc+44 20 7397 8900 Robert Smith/Cindy StoutjesdykInvestec Bank Limited+27 11 286 7662 Background On 14 August 2007, DiamondCorp signed an option agreement to acquire SonopDiamond Mining (Pty) Limited, South Africa's largest private diamond miningcompany for 7.5 million DiamondCorp shares and US$45 million in cash. As aresult of signing the option, DiamondCorp's shares were suspended from tradingon AIM and Plus Markets. A pre-condition on exercising the option was thatSonop's new Middle Orange River alluvial project reaches operating revenues ofUS$3 million per month and operating profits of US$1 million per month. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
DCP.L