New Millennium - Diamonds, exploration and mining

New Millennium is a diamond exploration company:

Positives:
It holds a 34% interest in the C9 concession in Angola with ENDIAMA (51%) and MOMBO (15%).
It has an alluvial license for C9 but suspended mining at the bequest of Endiama in 2005 so that the kimberlite prospect could be further investigated.

NML has a free carry interest (20%) with Hudson resources in Canada.

It is currently negotiating 3 kimberlite licenses in the vicinity of C9 after withdrawing from a deal to buy Kassai in Huambo, which was likely to have resulted in a reverse takeover.

They should have close to £6m in cash after a £5m placing in Dec 2005.

Negatives:
NML have delisted from the AIM, although an Ofex listing is muted.

Their nomad Daniel Stewart resigned "alledgedly" because of disagreements over the handling of the Kassai take over and the new placing. It was this final action that led to the suspension and subsequent delisting from the AIM.

There was a massive dilution of existing shareholders with the £5m placing and we still do not know who bought the shares.

rumour from the bb...

Following the suspension form the AIM (at NMLs) request and the resignation of the Nomad a number of posters contacted NML directors directly, here is what they had to say:

dean moriarty - 11 Jan'06 - 10:35 - 4282 of 4307

as a recent investor based on a broker's recommendation I got the following story about the suspension. NML wanted to take over Kassia who own kimberlite licences in Angola. Because of the respective valuations NML issued the billion shares to avoid it being a reverse takeover under aim rules. NML severed links with Daniel Stewart, who did not agree with this policy, saying DS were going to start a resource sector 9 months ago which has not happened. NML will choose a new NOMAD within 10 days. The takeover is going ahead and NML have been talking to a large miner whose name is similar to a MUFC centreback about financing exploration. the broker told me not to worry.

Fugu - 11 Jan'06 - 09:43 - 4269 of 4275
Well, fwiw...

Somewhat hacked off with the lack of news from this end, I thought I might try to speak to Senator Johnson, and after a bit of detective work, found a number that was answered by the man himself. I cannot say he had anything startling to reveal (I'm sure he wouldn't have anyway), but the conversation did reassure me that the negative spin bandied about recently was unwarranted. The important points he made were:

The suspension WAS at the companies request due to being in "very late stage negotiations" on the reverse t/o and NOT because of some poisonous troublemaker OR the split with Daniels Stewart.

He seemed a little suprised that the owner of the 1b shares was not public knowledge.

The split with DS was due to disagreements about the way the t/o was being handled. Their resignation was no suprise and they are "well on our way" to appointing a new NOMAD.

I asked why alluvial mining had ceased on C9 - he said it had not. When I questioned the RNS to that effect he told me "There is a thin line between exploration and mining." Yes, you CAN hear a smile on the 'phone...

He confirmed he had not been to Angola on the trip with Shane.

He confirmed NML do not trade on any other exchange.

He stated that he still believes the company's actions to be in the best interests of the shareholders (sounded quite offended I would suggest otherwise!)

I asked if there was anything he'd said he would rather not have appear on a public bb - "No, I haven't said anything I shouldn't"

Overall impression - relaxed, open, confident. OK, I'm not forgetting he IS a politician...

notready - 10 Jan'06 - 13:03 - 4208 of 4276 (premium)

Phoned SH 15 mins ago -
He has confirmed that the £5m has been placed. That is not the problem. It is a regulatory issue one part of which is the identification/possible announcements relating to placees holdings.
He does not expect the AIM listing to be cancelled as the last part of the latest RNS indicates if no nomad is appointed. That bit has to be in.
He said await announcements.

Previous news...

Resignation of Nomad / Broker - 10 January 2006

New Millennium Resources Limited (the "Company") announces that Daniel Stewart and Company Plc resigned as the Company's Nominated Adviser and Broker at 17.44 hrs on 6 January 2006 with immediate effect.

The Company is seeking to appoint a new Nominated Adviser and Broker without delay. Should a Nominated Adviser not be appointed by the 7th February 2006, the London Stock Exchange Plc will cancel the admission of the Company's shares to AIM.

Suspension from AIM
New Millennium Resources Limited has requested a suspension in trading of its ordinary shares pending clarification regarding the issue of 1 billion new ordinary shares pursuant to the placing announced on 6 December 2005.


Kimberlite acquisition / Issue of Shares

NML is pleased to announce that itis in advanced stages of negotiations to acquire a kimberlite asset in Angola through a joint venture or partial acquisition. Negotiations are expected to be completed within the month of November 2005. The market will be further updated once negotiations are completed.

New Millennium Managing Director Shane Healy commented: The Company has lacked a hard rock kimberlite asset in Angola. Whilst we do have indications of kimberlite on our concession in Greenland, in JV with Hudson Resources, our objective has always been to have a kimberlite prospect in Angola to compliment our alluvial operations. We now are close to achieving this objective.

The Company also announces that it has placed 48,608,331 shares to raise GB#662,000 (41 million shares @ 1.1p and 7,608,331 million @ 2.77p) to provide working capital for its exploration programme in Angola. It is expected that these shares will be admitted to AIM on 4 November 2005.

The Company further announces that it has issued 13,874,865 shares for services rendered to the Company in the form of consultancy, commissions and brokerage.


10 October 2005 - Trading Update / Directorate Change

Kimberlite Exploration License

The Company's subsidiary, Angola Resources Pty Ltd, is in discussions with the relevant Angolan authorities to acquire a kimberlite exploration licence for its C9 concession at Rio Lapi in North Eastern Angola. The Companies C9 concession abuts Catoca the 3rd largest diamond mine in the world. Catoca is a consortium involving a number of parties including Alrosa one of the big four world diamond producers. It is part of the Company's strategic plan to attract a JV partner from amongst the big four without which a kimberlite mining license is unlikely to be granted. To this end the Company is making all possible efforts to accommodate the requirements of the relevant Angolan authorities.

Shane Healy commented:

"Catoca has, at the behest of Endiama, commenced to explore the known kimberlites on C9. Catoca has drilled eleven holes on one of the identified kimberlites. This exploration ceased upon us establishing our equipment on that site. Endiama is anxious to accelerate the development of its kimberlite potential in Angola, and to this end is looking to those best able to exploit resources in the shortest possible time. This requires both financial and technical capabilities which rest almost exclusively with the major diamond producers. Alrosa has made numerous public statements that it intends to expand its operations in Angola. Catoca's proximity to our concession creates economies to Alrosa not available elsewhere in Angola. Not the lease of which is time to set-up full production which is estimated to be significantly less for Alrosa than other parties."

Exploration Programme

Endiama, the Angolan government owned diamond monopoly has requested that we cease mining operations and return to grab pit sampling on C9. This is to prevent any violation of possible kimberlite areas or interference with kimberlite exploration. The Company has acquiesced to Endiama's requests in the interest of a greater gain in the kimberlite prospect. In the interim, the concession will be fully explored to enable systematic co-ordination between the alluvial and possible kimberlite operations.

Shane Healy added:

Whilst alluvial diamond production is a lucrative cash flow operation, the asset
which adds greatest shareholder value is hard rock kimberlite. With this in view the Company is looking to work more closely with Endiama and its partners in Angola to gain a Kimberlite exploration licence. Endiama the Company's 51% partner in the project has assisted the Company by assigning one of its pre-eminent geologists and a senior topographer to the project. The Company and Endiama are committed to working together to ensure the most profitable outcome for the joint venture.

Resignation of Managing Director

The Board of Directors of New Millennium Resources Limited announces that John
Cross has resigned as Managing Director and Chief Executive Officer, to pursue
other interests. His resignation from the Board is effective immediately. The board wishes to thank John for his contribution to the Company and wishes him well in his new endeavors. Shane Healy, the current CFO, has been appointed Managing Director and Chief Executive Officer in the interim until a replacement CEO is recruited.

Reduction in Overheads

The Company has been geared up for mining and fully operational for the past 12
months. This has been an expensive undertaking. With a return to exploration
extensive costs reductions have been achieved. The substantial proportion of the
equipment is to be maintained on standby until such times as alluvial mining is
to recommence. Staff and manning levels have been reduced commensurately. Piet Badenhorst has stood down as Mine Manager and Neels Badenhorst will take over all responsibilities for onsite operations.


July 04 -Hudson Confirms Diamonds From Spring Drill Program and Inititates Summer Drilling

HUDSON RESOURCES INC. is pleased to announce that all three drill cores tested from the Garnet Lake area in West Greenland returned significant diamond counts. This result confirms that this in situ material is the source of the significantly diamondiferous samples collected in the 2004 exploration program. Hudson is now commencing further drilling in an effort to expand the size of the Garnet Lake discovery and to test other targets identified, but not yet drilled, during the earlier spring drill program that concluded in mid May 2005.

01 July 2005 - Trading Update on Rio Lapi operations.

The Company is in the process of obtaining extra equipment to devote to the kimberlite project. The equipment is being sourced out of South Africa and shipped to Angola. In the interim, equipment on site has been redeployed from the alluvial diamond operation to the kimberlite prospect. This is a temporary measure only however, as a result solid projections and forecasts cannot be made at this time as indicated in March.

New Millennium's CEO John Cross said today, "Competition for kimberlite in this region is fierce. Major diamond producers have once again seen the merits and huge rewards of hard rock diamond production in Angola. De Beers and TransHex have recently announced renewed interest in Angola especially in the Lunda Norde area. The potential to introduce a major joint venture partner and therefore enhance shareholder value rests with the Company's kimberlite potential. The decision to devote on-site equipment to this end is vital to achieve a successful joint venture."

The Company's alluvial exploration team continues to prospect for future
alluvial sites and is currently engaged in the Bilo area of the Rio Lapi lease.
This area was prospected extensively in the early 70's when results indicated
high diamond yields. Results to date on the new area have been very encouraging
turning up a number of quality stones

A sample of diamonds from production w/comm 29 May 2005


1 Jun 05: 12.5mill new shares issued at 4p raising £500k cash to bring forward its exploration program on the kimberlite prospect at its Rio Lapi concession in Angola. John cross said: "It was our intention to carry out this exploration during November and December 2005 and to fund the project out of cash flow from the alluvial operations. However, it has become necessary to move this plan forward six months to provide hard data to prospective major joint venture partners, who have shown an interest in our kimberlite prospect on C9."

Indications from third party data show up to 11magnetic anomalies exist on its Projecto Lapi C9 concession.

4 Apr 05: Alluvial diamond production starts

USEFUL LINKS:
New Millennium Website
Hudson Resources Website
FOR MORE INFO visit Minesite:
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