Brazilian Diamonds Limited

Brazilian Diamonds Limited

July 13, 2007 03:01 ET

Brazilian Diamonds Limited: Appointment of Company President, Grants of Options and Director Retirement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 13, 2007) - The Directors of Brazilian Diamonds Limited ("Brazilian Diamonds" or the "Company") (TSX:BDY)(AIM:BDY) are pleased to announce that Mr. Homero Braz Silva has been appointed to the position of President of the Company with effect from 16 July, 2007.

Mr. Silva is a highly respected geologist with more than 30 years of domestic and international experience in diamond exploration with De Beers in South America, Canada, Africa and Russia was until recently the Operations Manager for De Beers in South America.

During his time with De Beers, Mr. Silva has been involved in all aspects of diamond exploration and production, including the discovery of kimberlite provinces in North, Centre West and Northeast Brazil and Bolivia, Venezuela and Gabon.

As a consequence of his roles with De Beers, Mr. Silva has extensive experience in corporate and project management, governmental relations and environmental licensing which well qualify Mr. Silva to assume responsibility for the overall management of the Company's operations and exploration activities in Brazil.

The Chairman of Brazilian Diamonds, Mr. Kenneth Judge, said today, "We are delighted to have Homero Silva accept this important appointment and look forward to his considerable practical experience and strong technical background assisting our team of professionals to advance our exploration efforts in Brazil. Homero has been known to us for many years and already has an intimate knowledge of our portfolio as he was involved in the discovery of a number of our most important projects. We expect Homero's skill and experience to be a tremendous boost to the team of talented professionals we have already working with us in Brazil."

Homero Silva commented, "I am very pleased to have been asked to lead the team of talented professionals working with Brazilian Diamonds, many of whom were colleagues of mine at De Beers. I think Brazilian Diamonds has assembled a quality portfolio of advanced projects including the Canastra 1 and Salvador 1 kimberlite projects, both of which I know well from my time at De Beers. I look forward to helping the Company progress these and a number of other promising projects within the portfolio."

As a part of the terms of his engagement, Mr. Silva, who is not joining the board of the Company at this time, has been awarded options over 2,000,000 shares in the Company at an exercise price of Can$0.25 which will vest over the next two years. In addition, 2,325,000 options have been allotted to certain members of the Board and management of the Company in accordance with the terms of the Company's shareholder approved Option Plan. These options are exercisable on or before 12 July, 2012 at a price of Can$0.25 per share. The options granted to Board members are set out below:

Director Number of new options granted

David Cowan 150,000
Francis Johnstone 150,000
Roger Morton 150,000
Mike Byron 300,000

The Company also announces that Glenn Brown has retired as a Director of Brazilian Diamonds with effect from the AGM held on 7 June, 2007 where he did not stand for re-election.

Editors' Note:

Brazilian Diamonds is a leading Brazil-based exploration company focused on the discovery of kimberlites on its extensive portfolio of properties in the States of Minas Gerais and Bahia, with the goal of becoming a significant producer of diamonds.

The Company is awaiting final approval before commencing the environmental licensing process for development of the Canastra 1 kimberlite body for which mine feasibility work has already been completed and the required Mines Department approvals are already in place. It is intended to bring Canastra 1 into production once the environmental licensing process is completed.

The Company's Salvador diamond project in Bahia includes the diamondiferous Salvador 1 kimberlite. This project was acquired from De Beers which retains a right to reacquire up to 40% of any kimberlite found on the Salvador properties which is confirmed to contain more that 200 carats of diamonds.

The Company has a fully operational diamond separation/analysis laboratory at Patos de Minas, Minas Gerais which is strategically located near its properties in the Santo Antonio and Coromandel areas. The Company has a highly experienced team including four geologists located at the Company's facilities in Brazil.

The Company's strategy for non-core activities on its properties is to form joint ventures. A Cdn$1,000,000 feasibility study is underway for a joint venture for the mining of alluvial diamonds on its properties in the Santo Antonio river drainage. The joint venture involves two important Brazilian companies: CODEMIG, the state owned mining development organization and Mineracao Rio Novo Ltda., a wholly owned subsidiary of Andrade Gutierrez SA, one of Brazil's largest civil engineering firms and an existing large scale, dredge based producer of alluvial diamonds.

Contact Information

  • Brazilian Diamonds Limited
    Ken Judge
    + 44 7733 001 002
    Brazilian Diamonds Limited
    Stephen Fabian
    + 55 31 8814 5111
    Brazilian Diamonds Limited - Investor Relations
    + 44 207 590 5503
    Brazilian Diamonds Limited - Investor Relations
    North America
    Hanson Westhouse Limited (Nomad to the Company)
    Tim Feather/Matthew Johnson
    + 44 113 246 2610
    Teather & Greenwood Limited (Broker to the Company)
    Tom Hulme
    + 44 207 426 9000