Firestone Diamonds Board Agrees 0.5 Share Offer With Kopane

21st Jul 2010 12:00

LONDON (Dow Jones)--Firestone Diamonds PLC (FDI.LN) said Wednesday the boards of Kopane Diamond Developments (KDD.LN) and Firestone have reached agreement on the terms of a unanimously recommended all share offer by Firestone for Kopane on the basis of 0.4657 of a New Firestone Share for every 1 Kopane Share. MAIN FACTS: -The Acquisition is to be effected by means of a scheme of arrangement values each Kopane Share at 17 pence, based on a Firestone share price of 36.5 pence. -The Enlarged Group will benefit from a diversified portfolio of production, development and exploration stage diamond projects. -The portfolio is expected to provide cash flow from Firestone's new BK11 kimberlite mine in Botswana, significant potential future cash flows from the exploitation of the substantial resource that has been identified at the Main Pipe at Kopane's Liqhobong Project in Lesotho and from Firestone's Jwaneng Tailings Project in Botswana, and significant exploration potential from Firestone's portfolio of 107 other kimberlites in the Orapa and Tsabong kimberlite fields in Botswana. -Liqhobong is believed by the Firestone Directors to be the third largest undeveloped kimberlite resource as measured by contained carats and the fourth largest as measured by resource tonnage, and is considered by the Firestone Directors to be one of the most attractive undeveloped kimberlites in the world. -The acquisition represents a premium of 33.33% to the Closing Price of a Kopane Share of 12.75 pence on July 20 -The acquisition represents a premium of 44.68% to the Closing Price of a Kopane Share of 11.75 pence on Feb. 9 -The acquisition represents a premium of 42.86% to the volume weighted average price of a Kopane Share of 11.90 pence over the thirty business days preceding the date of this Announcement. -None of the Kopane Directors hold any Kopane Shares. -Firestone shares at 1058 GMT down 0.3 pence, or 0.8%, at 33.8 pence. -Kopane shares at 1058 GMT up 2.5 pence, or 19.6%, at 15.3 pence. By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires July 21, 2010 07:00 ET (11:00 GMT)