GREAT WESTERN DIAMONDS CORP.
TSX VENTURE : GWD

GREAT WESTERN DIAMONDS CORP.

January 02, 2008 21:17 ET

Vaaldiam Acquires 87.1% of Great Western Diamonds Corp.

SASKATOON, SASKATCHEWAN--(Marketwire - Jan. 2, 2008) -

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Vaaldiam Resources Ltd. (TSX:VAA) ("Vaaldiam") and Great Western Diamonds Corp. ("GWD") (TSX VENTURE:GWD) are pleased to announce that 82,416,248 common shares of GWD representing approximately 87.1% of the common shares of GWD have been validly tendered and taken up under Vaaldiam's offer to acquire all of the common shares of GWD. When taken together with the 1,111,112 common shares and the 555,556 common share purchase warrants of GWD that were held by Vaaldiam at the outset of the offer (representing 1.8% of the issued and outstanding common shares of GWD), Vaaldiam now holds approximately 88.3% of GWD's issued and outstanding common shares (assuming the exercise of the Share purchase warrants held by Vaaldiam).

Under the Vaaldiam offer, holders of GWD's common shares were offered 0.45 of a common share of Vaaldiam for every GWD share tendered. The aggregate number of Vaaldiam common shares to be issued will be approximately 37,087,312 in respect of the acquisition of the GWD common shares taken-up.

As noted in the circular for the offer, Vaaldiam will immediately begin taking steps to acquire the remaining common shares of GWD pursuant to a second stage transaction. Under the second stage transaction, the remaining holders of the GWD common shares will also have the right to receive 0.45 of a common share of Vaaldiam for each GWD common share.

Vaaldiam is South America's largest diamond producer through its 100% ownership in the Duas Barras and Chapada Mines in Brazil. Vaaldiam is also developing a number of advanced-stage kimberlite diamond deposits, including the Brauna deposits which are advancing towards a feasibility study later this year. Vaaldiam's principal office is located at 55 University Avenue, Suite 1105, Toronto, Ontario, M5J 2H7. For additional information please visit www.vaaldiam.com or contact Ken Johnson, President and Chief Executive Officer or Janet Reid, Manager Investor Relations at (416) 363-6927.

Great Western Diamond Corp. is an exploration and mine development company that is operated on a vision of growth and substantial enhancement of shareholder value based on a balance of management experience, technical expertise, and expansion of operations. GWD is currently focused on the 100%-owned Candle Lake Diamond Project in central Saskatchewan where an aggressive, results-driven evaluation program is targeted on reaching an advancement decision on the Candle Lake kimberlites by the end of 2008. While Candle Lake is the core diamond project, the Company continues to build a balanced and geographically diverse project portfolio with both advanced and grass-root diamond properties in Canada and Brazil.

Brent Jellicoe, P.Geo, President & CEO

Forward Looking Information

This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding the proposed acquisition of GWD by Vaaldiam and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from expectations are in the companies' documents filed from time to time with the stock exchanges and provincial securities regulators, most of which are available at www.sedar.com. The companies disclaim any intention or obligation to revise or update such statements.

(The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release)

Contact Information

  • Vaaldiam Resources Ltd.
    Ken Johnson
    President and Chief Executive Officer
    (416) 363-6927
    or
    Vaaldiam Resources Ltd.
    Janet Reid
    Manager Investor Relations
    (416) 363-6927
    Website: www.vaaldiam.com