West African Share Discussion Threads

[eh m es mx] 27/1/2010 08:22

All that mega hype by the Clontarf Road fan base.

Damp and Squib come to mind.

[daicaprice] 27/1/2010 08:21

That sums it up nicely.

DC

[pamelling] 27/1/2010 08:14

What a pile of sh*te..we've waited 3 months and now we are back to square one...

[redleafboy] 27/1/2010 07:55

The 6p to 12p then went to 20p with the placing pamelling. If the stock trades quickly up to 25p then that really is a good result imho. OK that is 5p post the consolidation, but for those that recently picked up stock at 3p or indeed less that is already an excellent return on capital.

Give this stock 2 to 3 years and it will be trading imho between £1 to £3

Or 20p to 60p in old money!

Not bad, eh?

[bobbieblock] 27/1/2010 07:46

What did you expect. Until the company starts making money or has a big proved up asset then it will go nowhere. Is stellar's mine is doing well then the share price will climb. Still only worth 15 million, so valuing WAD assets at 5mil. The directors and instituitions will want to get in low and exit high. So far all wad has done ahs lost money. We'll know in a year if its all smoke and mirrors of they have pulled their thumbs out their backsides and can make these mines work.

[pamelling] 27/1/2010 07:37

With the consolidation we are not going to be any better off... so much for talk of 6p-12p on return...

Shareholders shafted as usual with a consolidation...

[pamelling] 27/1/2010 07:34

27th January 2010
West African Diamonds plc
("WAD" or the "Company")

Proposed Acquisition of Stellar Diamonds Limited
Placing to raise GBP5.0 million
Posting of Admission Document
Notice of General Meeting

Further to the announcement made on 26 October 2009, the Directors of WAD
announce that an AIM Admission Document in relation to the proposed acquisition
of Stellar Diamonds Limited ("Stellar") (the "Acquisition") is being posted to
shareholders today. It is expected that WAD shares will be restored to trading
from 7.00am today.

The Acquisition will constitute a reverse takeover of the Company under the AIM
Rules and requires the prior approval of the Company's existing shareholders. If
the resolutions are passed, it is expected that readmission of the Company (as
enlarged by the Acquisition) to AIM will take place and that trading in its
shares will commence on 22 February 2010.

RBC Capital Markets and Astaire Securities have completed a successful placing
for the Company to raise gross proceeds of GBP5.0 million (the "Placing"),
conditional on completion of the Acquisition and the readmission. The Placing
was led by RBC Capital Markets and included Astaire Securities as joint Broker.
The Company has appointed RBC Capital Markets as its Nominated Adviser and Joint
Broker with effect from today and Astaire Securities shall continue to act as
Joint Broker.

The Placing will comprise an offer of new ordinary shares of 5p each ("the
Placing Shares") to institutional and other investors. A total of 25,000,000
Placing Shares will be issued at 20p per share (taking into account a proposed 5
for 1 consolidation of the existing ordinary share capital).

A circular and notice convening a general meeting of the Company to be held at
midday on 19 February 2010 at 71 Queen Victoria Street, London EC4V 4DE is
included in the Admission Document.

Rationale for the Acquisition
- Corporate and Operational Synergies: The Company will have a number of
opportunities to harness corporate and operational synergies, thus allowing the
operational cost base per carat to be reduced.
- Accelerated Growth Strategy: Revenue streams from two producing alluvial mines
will reduce financial risk, increase cashflow and will enhance growth
possibilities.
- Strong Project Pipeline: The Company will have four high grade kimberlite
projects at various stages of development.
- Strong Management Team: the Proposed Board has significant experience in the
West African mining industry and a proven track record of developing mines.

Use of Proceeds

The proceeds from the Placing will be utilised to capitalise existing producing
mines, accelerate its production ramp up, and advance key kimberlite development
and exploration projects.

Principal terms of the Acquisition

Under the terms of the Acquisition Agreement, the Company has agreed to acquire
the entire issued and to be issued share capital of Stellar for a consideration
equating to approximately three times the value of WAD, represented by an
approximate 75:25 split of the share capital in the enlarged group prior to the
issue of Placing Shares - 75 per cent. being attributable to consideration
shares to be allotted to Stellar shareholders and 25 per cent. being
attributable to ordinary shares currently held by WAD shareholders.

Prior to the Placing but assuming the share consolidation has taken place, a
total of 53,598,496 consideration shares will be issued and allotted to the
shareholders of Stellar on the basis of 1.005 new ordinary shares in the Company
for each Stellar share.

Based on the number of Existing Ordinary Shares in issue as at the date of this
announcement (being 89,947,519) and the mid-market price of 3.875p per Existing
Ordinary Share on 26 October 2009 (the date that trading on AIM in such shares
was suspended), the total consideration for the Acquisition is therefore
approximately GBP10.4 million of consideration shares.

Completion of the Acquisition Agreement is conditional, inter alia, upon
approval of the Acquisition and certain other matters by WAD shareholders and
the Placing Agreement becoming unconditional (save as for admission).

John Teeling, Chairman, commented:

"This is a good deal for WAD shareholders and the board is pleased to support
it. The enlarged group will be on a stronger financial footing due the placing
and the cashflow from two producing mines. The West African diamond mining
industry is underdeveloped and fragmented. Stellar Diamonds will be well
positioned to exploit opportunities in the area".

Karl Smithson, Proposed CEO of the enlarged group, commented:

"We are extremely pleased to have progressed with the Acquisition and Placing
and look forward to working together with the WAD team to create value for all
shareholders."

[eh m es mx] 27/1/2010 07:33

5 for 1 consolidation of the existing ordinary share capital

[pamelling] 27/1/2010 07:33

27/01/2010 7:30am


RESTORATION OF TRADING ON AIM


WEST AFRICAN DIAMONDS PLC


The trading on AIM for the under-mentioned securities was temporarily suspended.
The suspension is lifted from 27/01/2010 7:30am an admission document having
been published.

[asmodeus] 26/1/2010 19:08

The RTO details will be announced first thing tomorrow morning, I was told today by someone who should know.

[currypasty] 26/1/2010 17:06

AFD AGM very positive
It was mentioned how strong diamond price is, now only 10% off its all time high.
Shortage of rough diamonds in the system
good time to be a diamond miner

ein... quite likely

[fiachra] 26/1/2010 13:13

got the half yearly report this morning

There is no mention of the egm to ok the proposed reverse takeover?

[pamelling] 26/1/2010 11:30

Anybody heard on the grapevine what day this week we are supposed to be relisting?

[jibbajabba] 26/1/2010 09:11

I drive past it everyday... ha ha

[fathert] 25/1/2010 13:57

162 clontarf rd is the address of J Teelings offices

google the adress - lol

[father o toole] 25/1/2010 09:14

hi ein, fingers crossed thats the way it happens

[ein] 24/1/2010 22:31

F.O.T ,It is only for starters , will take a few weeks to get things really moving.

[waleriuszwatrobka] 24/1/2010 21:52

...and then quick surge up to 20p ;-)

[father o toole] 24/1/2010 20:37

Thats nice. for starters

[addict] 24/1/2010 17:25

Looks like an equivalent price for WAD shareholders of around 6p per share.

[eh m es mx] 24/1/2010 12:36

From The Sunday Times
January 24, 2010

Stellar Diamonds return to form for AIM

Dominic O'Connell, Matthew Goodman

A Diamond miner is set to break the long drought of resource company fundraisings on AIM.

Stellar Diamonds is this week expected to announce details of the London listing that will value it at about £20m. It is coming to the market via a reverse takeover of West African Diamonds. Both firms mine and explore in Sierra Leone and Guinea.

AIM was the market of choice for resources groups from all over the world during the boom years, with hundreds of oil, gas and mining firms raising money in London.

The credit crisis put paid to that and in the past two years AIM has become moribund. Its last resources listing, in July 2008, was that of Resaca Exploitation, an American oil and gas group.

Karl Smithson, Stellar's chief executive, said the merger with West African would give investors a bigger, more liquid company. Between £4m and £7m in new money is being raised. Lord Daresbury, the former boss of De Vere Hotels, will be chairman.

[devil20] 23/1/2010 13:21

OK! I thought it was a poster I hadn't seen. BTW, JT is about 62 now isn't he. Do you reckon he'll take this on for a few years or take an offer. People tend to slow down beyond 60 or so.
edit: sorry wrong thread...second part was meant re AFD.

[devil20] 23/1/2010 12:51

Who or what is...162?