13/12/2005 - 12:43

Elkedra to make $1.2m AIM placement

13/12/2005 - 12:43

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Elkedra Diamonds NL today announced plans to make a private placement worth $1.2 million to investors in the UK.

Elkedra Diamonds NL today announced plans to make a private placement worth $1.2 million to investors in the UK.

The new shares will be quoted on the London Stock Exchange's Alternative Investment Market. They will be issued at a price of 17 pence or 40 cents each.

Subiaco-based Elkedra is in the process of completing a feasibility study for its Chapada diamond project in Brazil, estimated to cost $7 million to develop.

Shares in Elkedra were unchanged at 47 cents in late trade.

The full Australian Stock Exchange announcement is below.

 

Elkedra Diamonds NL (ASX/AIM: EDN) has pleasure in announcing that it will place 3,117,059 shares at 17 British pence (A$0.40) to sophisticated investors in the UK raising a gross amount of 529,900 British pounds (A$1,246,823). The placement was managed by the company's London AIM Broker, Westhouse Securities.

The new shares will rank equally with existing shares on issue and application will be made for the new shares to be quoted on the AIM market of the London Stock Exchange and the ASX. Admission of the new shares to AIM is expected on 16 December 2005.

The net proceeds of the issue will be applied to bringing forward exploration activities in Brazil and to supplement the Company's working capital requirements associated with the development of Elkedra's 100% owned Chapada diamond project in Brazil.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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