Issue of Equity
April 15 2010 - 2:00AM
UK Regulatory
TIDMFDI
RNS Number : 2115K
Firestone Diamonds PLC
15 April 2010
Firestone Diamonds plc
Placing to raise GBP9.45 million
LONDON: 15 April, 2010
Firestone Diamonds plc, ("Firestone" or "the Company"), the AIM-quoted diamond
mining and exploration company (ticker: AIM:FDI), today announces that it has
conditionally placed 30,000,000 new ordinary shares ('Ordinary Shares') of 20
pence each in the Company (the 'Placing Shares') with institutional and other
investors at a price of 31.5p per Ordinary Share (the 'Placing Price') to raise
GBP9.45 million before expenses (the "Placing"). The Placing Price represents a
discount of 13.1 percent to the closing middle market price of 36.25 pence per
Ordinary Share on 14 April 2010 and a discount of 12.2 percent to the 30 day
volume weighted average price to 14 April 2010 of 35.88 pence. The Placing
Shares will represent approximately 23 percent of the Company's enlarged issued
share capital immediately following admission to trading on AIM ('Admission').
The Placing Shares will rank pari passu in all respects with the existing
Ordinary Shares in the Company. Application has been made for the Placing
Shares to be admitted to trading on AIM, and it is expected that trading will
commence at 8.00 am on 19 April 2010.
The proceeds of the Placing will be used as follows:
+----------+-----------------------------------------------------------+
| - | Approximately GBP2.3 million to cover additional capital |
| | required to bring BK11 into production in Q2 2010, as |
| | indicated in the Company's announcement of 31 March 2010. |
+----------+-----------------------------------------------------------+
| - | Approximately GBP2.2 million to cover earthmoving costs |
| | that have been brought forward into the first year of |
| | operation at BK11, as referred to in the Company's |
| | announcement of 31 March 2010. |
+----------+-----------------------------------------------------------+
| - | The remaining funds will be used to continue the |
| | development of the Company's project portfolio and for |
| | general working capital purposes. |
+----------+-----------------------------------------------------------+
Following Admission, the total issued ordinary share capital of the Company will
be 127,891,637 Ordinary Shares, all of which have voting rights.
Philip Kenny, CEO of Firestone Diamonds, commented: "We are very pleased to have
received significant support from existing and new shareholders for this
financing. While we are still progressing discussions with our bankers in
Botswana in relation to debt financing for BK11, the completion of this equity
financing and expected cash flow from production at BK11 substantially
strengthens the Company's financial position and will allow us to increase the
pace of development of our portfolio of over 100 kimberlites and our toll
treatment projects. With Firestone shortly to become one of only three
kimberlite producers worldwide outside of the major mining companies and the
significant shortfall in rough diamond supply projected in the coming years, we
remain confident about Firestone's future prospects."
A copy of the Company's corporate presentation will be made available on the
Company's website, www.firestonediamonds.com.
Firestone Diamonds will be holding an analyst presentation on Monday 19th April
at 11.00 am at the offices of Conduit PR, 76 Cannon Street, EC4N 6AE. If you
would like to attend the presentation please contact Jos Simson on +44 (0) 207
429 6603 or jos@conduitpr.com.
For further information, visit the Company's web site or contact:
+----------------------------------+--------------------------+
| Philip Kenny, Firestone Diamonds | +44 20 8834 1028/+44 |
| | 7831 324 645 |
+----------------------------------+--------------------------+
| Simon Edwards / Tim Redfern, | +44 20 7071 4330 / 4312 |
| Evolution Securities (Joint | |
| Broker) | |
| | |
+----------------------------------+--------------------------+
| Rory Scott, Mirabaud Securities | +44 20 7878 3360 |
| (Joint Broker) | |
| | |
+----------------------------------+--------------------------+
| Alexander Dewar / Neil McDonald, | +44 131 529 0276 |
| Brewin Dolphin Investment | |
| Banking | |
| (Nominated Adviser) | |
| | |
+----------------------------------+--------------------------+
| Jos Simson / Leesa Peters, | +44 20 7429 6603/+44 |
| Conduit PR | 7899 870 450 |
| | |
+----------------------------------+--------------------------+
Background information on Firestone Diamonds:
Firestone Diamonds plc ("FDI.L") is an international diamond mining and
exploration company with operations in Botswana and South Africa. Botswana is
the world's largest and lowest cost producer of diamonds, with annual production
worth over $2.5 billion, and is considered to be one of the most prospective
countries in the world to explore for diamonds.
Firestone is the largest holder of mineral rights in Botswana's diamondiferous
kimberlite fields, controlling over 25,000 square kilometres around the major
Orapa and Jwaneng mines and the entire Tsabong kimberlite field. Firestone has
103 kimberlites in its portfolio, of which BK11 is due to commence production in
Q2 2010, and 29 others have been proven to be diamondiferous.
DISCLAIMER
Brewin Dolphin Limited ("Brewin Dolphin"), which is authorised and regulated in
the United Kingdom by the Financial Services Authority, is acting as nominated
adviser to the Company for the purpose of the AIM Rules. Evolution Securities
Limited and Mirabaud Securities LLP, which are both authorised and regulated in
the United Kingdom by the Financial Services Authority, are acting exclusively
for the Company in relation to the Placing. None of Brewin Dolphin, Evolution
nor Mirabaud is acting for any other person in connection with the matters
referred to in this announcement and they will not be responsible to anyone
other than the Company for providing the protections afforded to clients of
Brewin Dolphin, Evolution and Mirabaud or for giving advice in relation to the
matters referred to in this announcement.
This announcement has been issued by the Company and is the sole responsibility
of the Company.
This announcement does not constitute a prospectus relating to the Company and
has not been approved by the UK Listing Authority, nor does it constitute or
form any part of any offer or invitation to purchase, sell or subscribe for, or
any solicitation of any such offer to purchase, sell or subscribe for, any
securities in the Company under any circumstances, and in any jurisdiction, in
which such offer or solicitation is unlawful. Accordingly, copies of this
announcement are not being and must not be mailed or otherwise distributed or
sent in or into or from the United States, Canada, Australia or Japan or any
other jurisdiction if to do so would constitute a violation of the relevant laws
of, or require registration thereof in, such jurisdiction or to, or for the
account or benefit of, any United States, Canadian, Australian or Japanese
person and any person receiving this announcement, (including, without
limitation, custodians, nominees and trustees) must not distribute or send it,
in whole or in part, in or into or from the United States, Canada, Australia or
Japan.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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