You're right of course, lots of companies right down the road here just as opaque, and doing less of substance as well, some of them, it would appear [swg-g-] .... sorry russett i thought i responded to your post here but i guess not .... anyway, got woken up on dmw today by the interest out of a Nesbitt player ... for the record the following are two releases from 08 July, then in the next post one from yesterday 16 July [definite effort to better inform us here, eh] -
' DiamondWorks issues 7,209,000 shares to Sir Trading
DiamondWorks Ltd (2)
DMW
Shares issued 52,120,015
Jul 4 2002 close $ 0.44
Monday July 8 2002
News Release
Mr. Antonio Teixeira of Sir Trading reports
ANTONIO TEIXEIRA ANNOUNCES ACQUISITION OF SHARES OF
DIAMONDWO ...
Sir Trading SA (Proprietary) Ltd. has acquired 7,209,000 common shares of
DiamondWorks issued from treasury, representing 12.1 per cent of the
outstanding common shares. The shares were issued by DiamondWorks to Sir
Trading in connection with an agreement dated as of Aug. 31, 2001, between
DiamondWorks and Sir Trading, as amended. The shares were issued in
consideration for DiamondWorks' acquisition from Sir Trading of 80.1 per cent of
the outstanding shares of Otterbea International (Proprietary) Ltd.
The purchase price for the 80.1-per-cent interest in Otterbea was $5,406,750
(Canadian), paid by DiamondWorks through the issuance into escrow of the
7,209,000 common shares of DiamondWorks at a deemed price of 75 Canadian
cents per share. If the before tax earnings of Otterbea for the 12-month period
from Sept. 1, 2001, to Aug. 31, 2002, is less than $2-million (U.S.), the purchase
price will be reduced based upon the percentage deviation from this amount. In
such event, the number of shares representing the revised purchase price will be
released from escrow to Sir Trading and the balance will be returned to
DiamondWorks for cancellation.
Antonio Teixeira, a director and shareholder of Sir Trading, is based in South
Africa and is the president and chief executive officer and a director of
DiamondWorks. Mr. Teixeira also has indirect beneficial interests in Lyndhurst
Ltd., which also beneficially owns common shares of DiamondWorks. Mr.
Teixeira informally directs the voting and other powers over the common shares of
DiamondWorks held by Sir Trading and Lyndhurst which total 40,540,358
common shares, representing 67.9 per cent of the outstanding common shares of
DiamondWorks.
(c) Copyright 2002 Canjex Publishing Ltd. stockwatch.com '
............... and the second from the same day -
' DiamondWorks completes purchase of Otterbea interest
DiamondWorks Ltd (2)
DMW
Shares issued 52,120,015
Jul 4 2002 close $ 0.44
Monday July 8 2002
News Release
Mr. Tony Teixeira reports
DIAMONDWORKS LTD. ACQUIRES 80.1% OF OTTERBEA
INTERNATIONAL (P ...
DiamondWorks has completed the acquisition of 80.1 per cent of Otterbea
International (Proprietary) Limited, a company specializing in procurement and
logistics in the African continent. The Otterbea interest was acquired from a South
African company controlled by Tony Teixeira, the chief executive officer and
principal shareholder of DiamondWorks. The remaining 19.9 per cent of Otterbea
is held by Anglovaal Mining Limited, a publicly listed South African mining
company.
The purchase price for the Otterbea interest was $5,406,750, paid by
DiamondWorks through the issuance into escrow of 7,209,000 common shares of
DiamondWorks at a deemed price of 75 cents per share. If the before tax
earnings of Otterbea for the 12-month period from Sept. 1, 2001, to Aug. 31,
2002, is less than $2-million (U.S.), the purchase price will be reduced based
upon the percentage deviation from this amount. In such event, the number of
shares representing the revised purchase price will be released from escrow to the
vendor and the balance will be returned to DiamondWorks for cancellation.
For corporate advisory services rendered in connection with the Otterbea
transaction, the company also issued 360,450 common shares of DiamondWorks
at a deemed issue price of 75 cents per share to Riverbank Group Ltd., a
corporation at arm's length to both parties to the transaction.
Through a series of subsidiaries, Otterbea operates in 14 African countries and
has representative offices in Europe and employs approximately 60 persons in its
operations. Since 1960, Otterbea has traded as a principal and, through a
substantial infrastructure that it has established throughout sub-Sahara Africa,
provides comprehensive services to the mining industry, including transportation,
warehousing, procurement, sales and distribution of essential equipment and
supplies. In its fiscal year ended June 30, 2001, Otterbea had consolidated gross
revenues of over $13-million (U.S.) and net profit before tax and non-recurring
items of approximately $185,000 (U.S.).
As DiamondWorks announced in Stockwatch April 11, 2002, Trans Sahara
Trading Limited (TST), a wholly owned subsidiary of Otterbea, has secured an
exclusive contract to supply petroleum to Zambia. TST's role is to manage the
importation, refinement and selling of petroleum products in Zambia. In connection
with this mandate, TST secured a one-year $65-million (U.S.) revolving crude oil
import credit facility from ABSA Bank Ltd., a major South African bank. The
ABSA credit facility may be used up to eight times per year, for total annual
availability of about $425-million (U.S.).
This contract is an important component in the establishment of the minimum,
pretax net earnings required to substantiate the purchase price of Otterbea.
Management of Otterbea is of the view that the model for the Zambian crude oil
contract is applicable to other African nations and is pursuing other potential
opportunities for additional contracts.
Ultimately, Otterbea and TST are expected to be important sources of cash flow
for DiamondWorks, which will enable DiamondWorks to pursue the further
acquisition and development of diamond projects in Africa. Further, it is the view
of DiamondWorks' current management that much of the success or failure of a
mining enterprise in many parts of Africa will be determined by the ability to
provide equipment, materials, supplies and logistical support at highly competitive
rates. Management believes that Otterbea's ability in these areas will increase
DiamondWorks' profitability of its own operations in Africa and give it strategic
advantages in competing for new development opportunities.
(c) Copyright 2002 Canjex Publishing Ltd. stockwatch.com ' |
