8/04/2005 Gravity Diamonds opens the London Market
Gravity Diamonds Limited is a company undertaking diamond exploration in Australia and the Democratic Republic of Congo (“DRC”). Key to Gravity’s business strategy is alliance agreements with BHP Billiton, the world’s largest diversified natural resources company. The Australian program has been based on the successful deployment of the FALCON® airborne technology. The DRC program gives Gravity access to highly prospective exploration ground previously unexplored with modern techniques.
Gravity‘s diversified portfolio of exploration projects places the company in two of the world’s principal diamond producing countries. It balances the low sovereign risk but higher geological risk of the mature exploration terrains of Australia against the higher sovereign risk but lower geological risk (therefore greater potential for early discovery success) in the emerging Kasai province of the DRC.
Phillip Harman, Managing Director of Gravity Diamonds commented, “BHP Billiton is not only our largest shareholder, holding 11.4 million of the 119 million shares on issue, but is also a key alliance partner. In each of these capacities they have stood by us, both in our equity raising endeavours and in our access to world-class exploration projects. The AIM listing will be welcomed by a significant number of our existing European based shareholders and it will provide us with access to a wider shareholder base and a market which understands the resource sector.”
On admission to trading on AIM, the company will have a market capitalisation of approximately £30 million. European investors, mostly connected with the diamond industry, hold approximately 58 percent of the company.
W.H. Ireland Limited is acting as broker and RFC Corporate Finance Ltd as nominated adviser to the company.