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Additional Information

Market:	AIM
Sector:	General Mining
EPIC:	AFD

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African Diamonds Full African Diamonds profile here

African Diamonds was established to develop diamond mines in Botswana and West Africa. The target is to have a producing mine within three years. Having a balanced portfolio of projects will help reach the objective. The current portfolio of the Company consists of:
JV in Botswana with Lucara to fast track the development of our licences to our goal of large gem stone quality diamond mine;
late stage exploration projects which are known to contain diamonds or diamond indicator minerals; and
early stage high potential concessions, both alluvial and hardrock.

African Diamonds says De Beers-linked account possibly involved in unnotified transfer of 1 mln shares

Thursday, March 11, 2010

African Diamonds (AIM: AFD) said it has been told by its registrars that 1m shares have been sold or transferred from an account, which it believes to be controlled by De Beers, without the company being notified. If this is true the transaction breaches the rules of the Financial Services Authority (FSA).

"This is very disappointing and strange”, African Diamonds chairman John Teeling stated. “In recent weeks, a senior director of De Beers turned down an offer to sell their block at a price significantly higher than the prices they obtained in the market. Subsequently, other approaches were made to De Beers' executives to sell their shares with no response".

African Diamonds said that, under FSA rules, an account holder must inform the company when shareholdings breach percentage points. The account held 4.4m shares, or approximately 5.8%, and it now holds 3.4m or 4.49% of the company’s share capital. As the company has not been informed, African Diamond’s has asked the FSA to examine the trades.

African Diamond’s AK6 project in Orapa, Botswana, is being developed through a joint venture between African Diamonds and Lucara Diamond Corp (TSX-V: LUC), an associate of Lundin Group. African Diamonds currently has a 30% interest in the project and Lucara owns the remaining 70%.

Last month, African Diamonds received the latest valuation of diamonds from its AK6 mine in Botswana, and at US$162 a carat, the valuation exceeded the company’s previous projections. Furthermore the valuation is US$23 per carat higher than prices used in the current AK6 development studies. The new valuation also indicates the possibility of a US$200 per carat value at production, African Diamonds said.

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