www.afdiamonds.com
African Diamonds was established to develop diamond mines in Botswana and West Africa. The target is to have a producing mine within three years. Having a balanced portfolio of projects will help reach the objective. The current portfolio of the Company consists of:
JV in Botswana with Lucara to fast track the development of our licences to our goal of large gem stone quality diamond mine;
late stage exploration projects which are known to contain diamonds or diamond indicator minerals; and
early stage high potential concessions, both alluvial and hardrock.
African Diamonds rejects ex-directors' royalty claim on AK6 diamond discovery
African Diamonds (LON:AFD) announced that two of its former directors have initiated legal proceedings against the company, claiming they are entitled to a 3% royalty from the AK6 diamond discovery.
African Diamonds responded that the “claim is without merit” and pledged to vigorously defend against it.
In their claim, the directors Mark Scowcroft and Leon Daniels are referring to an agreement dated 12 July 2002 relating to the sale of their private company, Kukama Mining & Exploration Proprietary Limited, to African Diamonds.
The AK6 diamond discovery was made on a De Beers controlled concession joint ventured with African Diamonds in 2004.
The company also said that the Lucara Diamonds Corp (TSX-V:LUC) offer and negotiations remain unaffected. The conduct of, and obligations under, the litigation will be retained by African Diamonds.
On 4 October, African Diamonds recommended a takeover offer from Lucara Diamonds which values the company at C$82 million, approximately £51 million.
The deal effectively sees Lucara buying AFD’s stake in the AK6 diamond deposit. In return AFD shareholders will receive a 26.57% stake in the Canadian company.
AFD owns 40% of AK6, as well as a portfolio of exploration projects in Botswana.
Lucara’s primary asset is a 75% stake in the Mothae Diamond Mine in Lesotho.
Today's announcement did not move the shares in African Diamonds in either direction.
According to African Diamonds chairman John Teeling, the Lucara deal will create a C$240 million emerging diamond producer controlling two new kimberlite diamond mines.
