West African Diamonds suspension lifted

Date: Wednesday 27 Jan 2010

Shares in West African Diamonds have had their suspension lifted and are up 10% following clarification of the company’s proposed takeover of a regional rival.

They were suspended in October after the company, which explores for diamonds in Sierra Leone and Guinea, said it had signed terms to acquire Stellar Diamonds, a privately held West African diamond producer.

The company said this morning that it has posted an AIM admission document in relation to the proposed acquisition to shareholders.

‘This is a good deal for WAD shareholders and the board is pleased to support it,’ said chairman John Teeling.

‘The enlarged group will be on a stronger financial footing due the placing and the cashflow from two producing mines. The West African diamond mining industry is underdeveloped and fragmented. Stellar Diamonds will be well positioned to exploit opportunities in the area.’

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