Proactiveinvestors recommends
Stocktube video
06/06/2011

Tim Wilkes at Firestone Diamonds says margins have grown substantially

View full size
Additional Information
Market: AIM
Sector: General Mining - Diamonds & Gemstones
EPIC: FDI
Latest Price: 5.88p  (4.44% Ascending)
52-week High: 32.75p
52-week Low: 5.38p
Market Cap: 32.08M
1 year chart
digital-look imported chart image
1 day chart
digital-look imported chart image
Watchlist/Portfolio

Add to watchlist:

Only registered members can add into watchlist !

Register here !
Firestone Diamonds
www.firestonediamonds.com

Firestone is a UK-based diamond mining and development company with assets located in Botswana and Lesotho. Firestone also controls a substantial portfolio of diamond exploration and development projects in the Orapa, Jwaneng and Tsabong regions of Botswana.

Full Firestone Diamonds profile here
Is FDI a Buy, Sell or Hold?Get your FREE analysis of FDI
Pdf

Firestone Diamonds in recommended takeover of Kopane Diamonds

21st Jul 2010, 12:49 pm Firestone Diamonds in recommended takeover of Kopane Diamonds

Firestone Diamonds (LON:FDI) has emerged as a surprise bidder for rival Kopane Diamond Developments  (LON:KDD). Kopane’s board has unanimously recommended the all-paper deal that values the shares at 17 pence each, or £51 million. This represents a 36 per cent premium to last night’s closing price.

At 12.10pm the shares were trading at 14p each, up 1.25p or 10 per cent.

Kopane had been identified as a potential bid target. However nobody expected Firestone to emerge as the would-be buyer.

The pair say the deal will give the enlarged group a more "diversified portfolio of production, development and exploration stage diamond projects".

The main assets are Firestone's new BK11 kimberlite mine in Botswana, the pipe at Kopane's Liqhobong project in Lesotho and Firestone's Jwaneng tailings project in Botswana.

There is also significant exploration potential from Firestone's portfolio of 107 kimberlites in the Orapa and Tsabong kimberlite fields in Botswana.

The takeover has the backing of investors speaking for around 36 per cent of Kopane, including chairman Frank Scolaro, who owns a 16 per cent stake.

He said: "The Kopane board believes the value that the offer from Firestone places on Kopane is fair in current market conditions and that the all share offer will afford Kopane shareholders the opportunity of benefiting from the attractive growth profile of Firestone's substantially broader asset base of diamond." 

Kopane investors will receive 46.57 Firestone shares for every 100 they currently hold. The takeover is set to be complete via a scheme of arrangement by September 30.

Firestone chairman James Kenny said: "The board believes that the acquisition of Kopane will improve Firestone's prospects and enable the enlarged group to become one of the leading mid-tier diamond producers, with the potential to produce in excess of 1 million carats per annum."

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.