Quarterly Report for the period ended 30 June 2009
(Thomson Reuters ONE) - DiamonEx LimitedAIM Release31 July 2009QUARTERLY REPORTFOR THE QUARTER ENDING 30 JUNE 2009- Continuing suspension in trading of DiamonEx Limited ("DiamonEx" orthe "Company") Shares- Execution of formal agreement for sale of majority interest ofDiamonex Botswana Limited delayed- Lerala mine and plant on care and maintenanceBackgroundDiamonex Botswana Limited under Judicial ManagementAs previously announced the impact of the global financial crisis onworld diamond markets has rendered the production of diamonds byDiamonex Botswana Limited (DBL), DiamonEx's fully owned subsidiaryuneconomic.A decision was made to apply to the High Court of Botswana for DBL tobe placed under Judicial Management. The Judicial Management Orderwas confirmed on 27 March 2009 (Botswana time) and provides DBL witha period of immunity from claims from its creditors.The restructuring plan (Restructure) previously announced to themarket was expected to be completed by end of May 2009.StatusAs previously announced one of the key issues for the completion ofthe Restructure was obtaining the agreement of DBL's financeproviders to the Restructure and to enter into interim settlementarrangements with those finance providers. Delays in finalising thesearrangements with the finance providers have delayed the completionof the Restructure.The European Investment Bank (EIB) is a key finance provider for DBL.Notwithstanding efforts by the Board and the proposed purchaser ofthe majority interest in DBL to reach an interim arrangement withEIB, EIB has elected to seek an order from the Botswana Courts toterminate the Judicial Management process. The hearing of EIB'sapplication was held on 26 June 2009 and a decision is pending. TheRestructure can not progress until judgement is given. The Company isunable to give any indication of the result of the case, however, theBoard is proceeding on the basis that the decision should confirm theJudicial Management order and possibly impose certain conditions.In addition, EIB have made an application to the Botswana Courtsseeking an order regarding the enforceability of the Deed of Pledgeand Cession of Claims executed by DiamonEx and EIB. DiamonEx hasengaged a Gaborone, Botswana based law firm to advise on this matterand subject to the advice provided intends to be in a position todefend EIB's claim. No date has been set for the hearing of thisapplication.Suspension of TradingUpon obtaining the initial Judicial Management order, application wasmade to the Australian Securities Exchange, the Botswana StockExchange and the Alternative Investment Market of the London StockExchange to suspend trading in DiamonEx's shares. The Company'sshares remain in suspension and will remain so until such time as theCompany has completed the Restructure subject to all necessaryregulatory approvals being obtained.The timing for the completion of the Restructure and the re-admissionof the shares to trading will be in part determined by the conclusionof the legal proceedings in Botswana. The Board anticipates that itsshares will remain suspended from trading up until 31 December 2009.The FutureCompletion of the Restructure will require the holding of a generalmeeting of DiamonEx shareholders to approve the sale of 80% of DBLand the restructuring process. All efforts of DiamonEx and thepurchaser of the majority interest in DBL are being applied to bringthis transaction to completion.Lerala under care and maintenanceCurrently the Lerala diamond mine is under care and maintenance,supervised by the court appointed judicial manager.Exploration activitiesNo exploration activities have been undertaken by the Company in thelast quarter.OUTLOOK FOR THE NEXT QUARTERThe focus for the current quarter will be finalising the arrangementsto complete the Restructure, on developing a funding strategy forDiamonEx that will provide a stable financial basis and in acquiringa suitable development project to take DiamonEx forward.For and on behalf of the BoardPaul CrawfordCompany SecretaryFor further information contact:Dan O'NeillManaging DirectorTel: +61 7 3720 8944Mob: +61 407 596 942Email: diamonex(at)diamonex.com.auGreg KingChairmanTel: +61 7 3720 8944Mob: +61 41 473 730Email: diamonex(at)diamonex.com.auWill Souter or Rob AdamsonRFC Corporate Finance Ltd (Nomad)Tel: +61 2 9250 0050+61 2 9250 0041Email: will.souter(at)rfc.com.aurob.adamson(at)rfc.com.auFox-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.
Datum: 31.07.2009 - 07:54 Uhr
Sprache: Deutsch
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