News out today:
DiamondWorks announces board change, financing
VANCOUVER, Oct. 7 /CNW/ - Bruce Walsham, President, CEO and Chairman of
DiamondWorks Ltd., announced today that Tony Buckingham has resigned from the
Board of Directors of the company. Mr. Buckingham, in tendering his
resignation, stated that he would continue to assist in the corporate
development of DiamondWorks and has helped arrange a US$2 million loan for the
company to be used at its Yetwene and Luo mines. He also stated that
DiamondWorks had progressed quickly under the direction of the current board
and management team, and it was now appropriate for him to spend more time on
his other corporate interests, most notably Heritage Oil & Gas, an emerging
African oil producer.
Mr. Buckingham was a founding director of DiamondWorks, joining the board
in October 1996 when DiamondWorks acquired 100% of Branch Energy Ltd., a
company with diamond concessions in Angola and Sierra Leone. As a principal
of Branch Energy Ltd. at the time of the acquisition, Mr. Buckingham agreed to
sit on the DiamondWorks board until the company had established its diamond
mining operations.
''Mr. Buckingham has played a key role in the company's growth into a
consistent diamond producer,'' Mr. Walsham said. ''He has provided us with
extensive knowledge and insight into operating in Africa and I am pleased that
he has reaffirmed his continued commitment to the long-term development of
DiamondWorks. We thank Tony for his hard work and support over the past two
years and wish him all the best in his other endeavors.''
Mr. Buckingham retains voting control over approximately 25% of
DiamondWorks shares, and will continue to assist DiamondWorks' management in
pursuing new diamond opportunities in Africa. A nomination to replace Mr.
Buckingham will be made shortly.
The US$2 million loan will bear interest at US dollar commercial prime
rate plus 3.5% per annum, and will be secured against DiamondWorks' interest
in its Yetwene property and associated plant and equipment. The transaction
is subject to regulatory approval.
DiamondWorks is a global diamond mining company. In Angola, DiamondWorks
is currently producing around 12,000 carats a month of high-quality alluvial
diamonds from its Luo and Yetwene mines. A parcel of approximately 11,000
carats produced by the company in September is currently being valued in
Luanda, Angola, prior to export to Antwerp for sale. The company is also
developing the Camatchia and Camagico kimberlite diamond pipes in Angola and
the Koidu pipe in Sierra Leone, and is evaluating the Kao pipe in Lesotho.
DiamondWorks' shares trade on the Toronto Stock Exchange under the symbol DMW.
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For further information: Bill Trenaman, (604) 669-8871, or view
DiamondWorks' website at diamondworks.com
PHIL
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