Brazilian Diamonds Limited

Brazilian Diamonds Limited

December 08, 2006 16:11 ET

Brazilian Diamonds Limited Placing to Raise Pounds Sterling 1.98 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 8, 2006) - The Board of Brazilian Diamonds Limited (TSX:BDY)(AIM:BDY) is pleased to announce the placing of 24,710,000 new common shares of no par value each in the Company ("Shares"), conditional upon admission to trading on AIM and the Toronto Stock Exchange ("TSX") ("the Placing").

The Placing will raise approximately Pounds Sterling 1.98 million (before the expenses of the issue). This fundraising will enable the Company to complete its anticipated exploration programme for 2007 which includes further drill testing of the large Regis Kimberlite, bulk sampling at the Salvador 1 Kimberlite, completion of feasibility studies at the Santo Antonio do Bonito alluvial joint venture and general administration expenses.

Of the 24,710,000 Shares subscribed under the Placing, 21,510,000 Shares have been placed by the Company and Teather & Greenwood Limited with UK institutional investors at a price of 8p per share and 3,200,000 Shares have been placed by the Company with a US institutional investor at a price of US$0.16 per share.

Following the Placing there will be 168,413,722 Shares in issue. The new Shares will rank equally with existing Shares and the new Shares are expected to be admitted to trading on AIM and TSX on 14 December 2006.

Ken Judge, Chairman, commented:

"The continuing support of our institutional shareholders for the ongoing exploration activities in Brazil is extremely pleasing and will enable Brazilian Diamonds to conclude several important initiatives which have already shown significant promise. We are optimistic that the important results being achieved at several of our exploration projects will show that we are indeed moving closer to demonstrating the commercial viability of one or more of these projects."

Finder's and broker's fees payable in cash will be paid in conjunction with this placement in accordance with TSX policies. The Company has also issued a consultant to the Company warrants to purchase an additional 1 million common shares at a price of 10p per share for one year from the date of award of these warrants.

Certain statements included herein constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements are based on certain assumptions by Brazilian Diamonds and as such are not a guarantee of future performance. Actual results could differ materially from those expressed or implied in such forward-looking statements due to factors such as general economic and market conditions, increased costs of exploration and unforeseen logistical issues. Brazilian Diamonds is under no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.

Contact Information

  • Brazilian Diamonds Limited
    Ken Judge
    + 44 7733 001 002
    Brazilian Diamonds Limited
    Stephen Fabian
    President & CEO
    + 55 31 8814 5111
    Brazilian Diamonds Limited
    Investor Relations - Europe
    + 44 207 590 5503
    Brazilian Diamonds Limited
    Investor Relations - North America
    Hanson Westhouse LLP (Nomad to the Company)
    Tim Feather
    + 44 113 246 2610
    Teather & Greenwood Limited (Broker to the Company)
    James Maxwell
    + 44 20 7426 9000