Release: Recommended cash offer by Gem Diamonds for BDI Mining Corp
Thursday, April 12 2007 - 05:00 AM WIB
Offer Highlights
? Cash offer of 37 pence for each BDI Mining Share
? Offer provides BDI Mining Shareholders with an 8.8 per cent. premium to BDI Mining?s closing share price on 10 April 2007 and values all BDI Mining?s issued and to be issued share capital at approximately ?41.9 million
? Offer unanimously recommended by the BDI Mining Directors
? Irrevocable undertakings and letters of intent to accept the Offer received in respect of, in aggregate, 61,842,657 BDI Mining Shares, representing approximately 59.6 per cent. of BDI Mining's issued share capital, including from all the BDI Mining Directors
? Transaction adds to Gem Diamonds' portfolio an 80 per cent. holding in Cempaka, a high gem quality producing alluvial diamond mine in Indonesia, with potential for significant production increase
?We are pleased to have reached agreement with the BDI Mining Directors and that they have unanimously recommended Gem Diamonds? Offer to their Shareholders. We believe that Gem Diamonds? expertise in alluvial diamond mining, together with our intention to undertake additional investment in the Cempaka mine, will significantly enhance the operational performance of Cempaka.
Cempaka provides Gem Diamonds with an opportunity to diversify geographically whilst retaining its focus on high quality diamond production and positions Gem Diamonds as a company with global ambitions.
We look forward to working with the management of BDI Mining, the Government of Indonesia and the regional government of Kalimantan to fulfil Cempaka?s potential.?
Commenting on the Offer, Lee Spencer, Managing Director of BDI Mining, said: ?We welcome Gem Diamonds? Offer for BDI Mining which we believe fairly values BDI Mining and provides certainty to Shareholders. We have successfully commissioned and operated the Cempaka mine since March 2005. We have recently conducted exploratory work and, given the encouraging results, we have plans to increase the production capacity at Cempaka. Gem Diamonds provides both complementary technical skills and additional capacity for investment at a time of technical and implementation risk for BDI Mining. I am looking forward to working with Gem Diamonds to realise the vision of Indonesia becoming a significant producer of diamonds?.
There will be a conference call for investors and analysts at 11.00 a.m. (London time) on 11 April 2007. It can be accessed by dialling +44 (0) 1452 587 356. The presentation to be used in connection with the conference call can be downloaded from www.gemdiamonds.com. (end of release)