27/10/2008 - 16:30

Gutnick joins North Australian Diamonds

27/10/2008 - 16:30

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Mining entrepreneur Joe Gutnick has been appointed to the board of East Perth-based North Australian Diamonds Ltd as executive chairman.

Mining entrepreneur Joe Gutnick has been appointed to the board of East Perth-based North Australian Diamonds Ltd as executive chairman.

Mr Gutnick, who runs phosphate company Legend International Holdings Inc, takes over from chairman John Hopkins who will stay on as a non-executive director.

Additionally, executive director Tom Redcliffe has resigned by will continue to act as chief executive for the company.

"The board considers that the opportunity to secure the services and support of Mr Gutnick will greatly assist the company to progress the Merlin project," North Australian said.

Additionally, the company said it will combine stage two and three of a previously announced capital raising program, which will raise some $6 million with the placement of 750 million shares at 0.8c each.

The placement will be underwritten by Yahalom International Resources Corp, a company associated with Mr Gutnick.

Yahalom has also agreed to provide a $600,000 loan facility to North Australian at an interest rate of 10 per cent each year to provide funds for ongoing operations.

North Australian said the loan will be repaid in full from proceeds of the placement or by the end of this financial year, whichever is earlier.

The placement is subject to shareholder approval.

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