West Perth's Kimberley Diamond Company NL has lodged a pre-admission announcement for the sale of 330 million shares on the AIM market of the London Stock Exchange.
West Perth's Kimberley Diamond Company NL has lodged a pre-admission announcement for the sale of 330 million shares on the AIM market of the London Stock Exchange.
Currently trading at around $1.27 on the ASX, Kimberley aims to improve the its access to future capital for its Ellendale diamond project, which was recently forecast to last another 12 years.
The company was forced to issue 5 million shares at $1.80 to the Marketing Company, a syndicate of diamond and jewellery industry participants, for cancelling a contract that would have seen it market Kimberley products for five years.
Under the agreement, the Marketing Company had the right to purchase 50 percent of Kimberley's run-of-mine production for a period of five years at a 5 percent premium to fair market value, as well as the right to cut, polish and process the rough diamonds where appropriate, to enable them to be sold on local and international markets.
Kimberley now freely deals with 100 percent of its run-of-mine diamond production.
The company has appointed Perth based RFC Corporate Finance Ltd as its nominated adviser and Numis Securities Ltd as its UK broker.
The full announcement is pasted below
The directors of Kimberley Diamond Company NL (ASX: KIM) (Kimberley or the Company) are pleased to advise that the Company today lodged its "Pre-Admission Announcement" for the admission of the ordinary shares in the Company to trading on the AIM market of the London Stock Exchange.
Under the fast track route for AIM admission, which is available to Kimberley due to its existing ASX listing, the Pre-admission Announcement must be made at least 20 days before the AIM listing date. On this basis, it is anticipated that the AIM listing will take place on or around 28 July 2006.
The proposed AIM listing is intended to broaden Kimberley's shareholder base, offer investors in the UK and European markets easier access to the Company's securities and thereby improve the Company's access and flexibility for future capital raisings
that may be required to progress its Ellendale Diamond Project.
The Company has appointed Australian based group RFC Corporate Finance Ltd as its Nominated Adviser and respected London broker, Numis Securities Ltd, as its UK broker in relation to the AIM listing.
The Company's ordinary shares will continue to be listed on the Australian Stock Exchange ("ASX"). Shareholders can trade their shares on either the ASX or AIM, but before doing so, will need to transfer their shares onto the relevant share registry and
establish an account with an appropriate stockbroker. The Company and its share registrars can provide further details on such procedures to interested shareholders.
Further information is contained in the AIM Pre-Admission Announcement and Appendix that have been submitted to the London Stock Exchange and which have also been lodged on the Company's website, www.kimberleydiamondco.com.au.
