DON Diamonex

 
TIDMDON 
 
DiamonEx Limited 
AIM Release 
 
30 April 2009 
 
QUARTERLY REPORT 
FOR THE QUARTER ENDING 31 MARCH 2009 
 
- Diamonex Botswana Limited placed under Judicial Management 
- Suspension in trading of DiamonEx Limited ("DiamonEx" or the 
"Company") Shares 
- On going work being done on formal agreement for sale of majority 
interest of Diamonex Botswana Limited 
- Lerala mine and plant on care and maintenance 
 
Diamonex Botswana Limited under Judicial management 
 
As announced on 3 November 2008, the prices obtained from the sale of 
DiamonEx's rough diamond product were severely impacted by the global 
financial crisis. In January 2009 it was evident that prices for 
rough diamonds were unlikely to increase in the short term. The Board 
then investigated various alternatives to address the operational 
funding requirements of Diamonex Botswana Limited (DBL), DiamonEx's 
fully owned subsidiary. 
 
A decision was made to apply to the High Court of Botswana for DBL to 
be placed under Judicial Management. . The first hearing seeking the 
Judicial Management Order took place on Friday, 23 January 2009 
(Botswana time). The Judicial Management Order was granted by the 
Court. The making of the Judicial Management Order may place DiamonEx 
in breach of covenants with a number of its borrowers. However, the 
order for judicial management provides DBL with a period of immunity 
from claims from its creditors. 
 
Suspension of Trading 
 
Upon obtaining the Judicial Management Order, application was made to 
the Australian Securities Exchange, the Botswana Stock Exchange and 
the Alternative Investment Market of the London Stock Exchange to 
suspend trading in DiamonEx's shares. 
 
Sale of Majority Interest In Diamonex Botswana Limited 
 
Since the granting of the Judicial Management Order, DiamonEx has 
investigated numerous alternatives to position DiamonEx for the 
future and address the finance problems incurred through the 
operations of DBL. 
 
As announced on 20 March 2009, the key terms of a conditional 
agreement for the sale of 80% of the shares in DBL were finalised. 
The agreement is with Fleming Asset Management Botswana acting on 
behalf of the DiamonEx Convertible Bond Holders and DiamonEx. 
 
The agreement provides for the transfer by DiamonEx of 80% of the 
shares in DBL to a special purpose vehicle (Purchaser). Additionally, 
DiamonEx will transfer its diamond exploration tenure in the USA to 
the Purchaser. Completion of the sale transaction (Transaction) is 
dependent on a number of matters, including agreement of future 
repayment terms under the finance agreements between DBL and its 
bankers. Discussions with these lenders are ongoing and the outcome 
is uncertain at this time. 
 
The Future 
 
Continued work is being undertaken by the Directors in order to 
facilitate the negotiations between all stakeholders to the proposed 
sale and thus ensure that the Transaction is completed. 
 
On successful completion of the Transaction, DiamonEx will manage its 
20% investment in DBL and restructure the company to pursue other 
exploration and development opportunities. Once the Transaction has 
been completed it is the Directors' intention to seek re-instatement 
to trading of DiamonEx's shares on the ASX, the Botswana Stock 
Exchange and the Alternative Investment Market of the London Stock 
Exchange, however this will be subject to DiamonEx having complied 
with the relevant exchange's requirements. ASX has advised that prior 
to re-instatement it will require DiamonEx to disclose its future 
plans and strategy for its continued operation as a viable business 
and demonstrate that it has met all ASX Listing Rules requirements. 
 
Lerala under care and maintenance 
 
Currently the Lerala diamond mine is under care and maintenance, 
supervised by the court appointed judicial manager. 
 
Exploration 
 
Owing to financial constraints, DiamonEx has allowed tenure on its 
exploration properties in Botswana to lapse. Selected parts of this 
exploration portfolio will be re-applied for. 
 
OUTLOOK FOR THE NEXT QUARTER 
 
The focus for the current quarter will be finalising the arrangements 
to complete the Transaction, on developing a funding strategy for 
DiamonEx that will provide a stable financial basis and in acquiring 
a suitable development project to take DiamonEx forward. 
 
For and on behalf of the Board 
 
Paul Crawford 
Company Secretary 
 
For further information contact: 
 
Dan O'Neill 
Managing Director 
Tel: +61 7 3720 8944 
Mob: +61 407 596 942 
Email: diamonex@diamonex.com.au 
 
Greg King 
Chairman 
Tel: +61 7 3720 8944 
Mob: +61 41 473 730 
Email: diamonex@diamonex.com.au 
 
Will Souter or Rob Adamson 
RFC Corporate Finance Ltd (Nomad) 
Tel: +61 2 9250 0050 
+61 2 9250 0041 
Email: will.souter@rfc.com.au 
rob.adamson@rfc.com.au 
 
Fox-Davies Capital Ltd (AIM Broker) 
Tel: +44 20 7936 5200 
 
=--END OF MESSAGE--- 
 
 
 
 
This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement. 
 

Diamonex (LSE:DON)
Historical Stock Chart
From Oct 2024 to Nov 2024

Diamonex (LSE:DON)
Historical Stock Chart
From Nov 2023 to Nov 2024