European Diamonds Plc (AIM: EPD) announced a positive pre-feasibility study results for its Main Pipe diamond project in Lesotho – identifying potential for over US$1 billion of recoverable diamonds. The company also announced changes to senior management, the Board of Directors and a corporate re-organisation.
Timothy Read joins the Board of the Company as Executive Chairman. Stephen Lay joins the Board as Chief Operating Officer. Roy Spencer steps down as CEO and becomes a non-executive director. Murdoch Beaton steps down as a director but will continue to act in an advisory on activities in Southern Africa, he remains a director of the Company's Lesotho subsidiaries. Buddy Doyle steps down as Chairman but remains as a non-executive director.
The company proposes to spin off shares of the Finnish diamond exploration subsidiary into a new public company - North European Diamonds Ltd. The Board also plans to a change of name of the main company to one that reflects the company’s focus on diamond production in Lesotho.
Roy Spencer, Director of European Diamonds: said
"We believe the Board and senior management changes and proposed corporate re-organisation will accelerate market recognition of the considerable value we have already developed for shareholders. The PFS is comprehensive with all key areas independently verified by experienced consultants. The PFS clearly demonstrates the potential economic viability of the Main Pipe even with the conservative parameters used.”