West African Diamonds PLC (AIM: WAD) confirmed in reaction to press speculation that it has signed heads of terms to acquire Stellar Diamonds Ltd, a privately held West African diamond producer, constituting in a reverse takeover under AIM rules. Both boards plan to relist the combined venture on AIM.
Stellar Diamonds’ principal shareholder is African Aura Mining Inc (AIM: AAAM; TSX-V: AAZ).
Further announcements regarding the acquisition will be made in due course and a circular sent to WAD shareholders containing details of the acquisition and related matters as well as convening a general meeting of the company to approve the acquisition and associated matters as soon as possible, the company added.
African Aura Mining is the result of the merger, announced in April this year, of Mano River Resources Inc with African Aura Resources Ltd, in which Mano River ended up with 75 percent of the enlarged group.