Business
Statement re press speculation
Statement re press speculation.
About this update from Gem Diamonds Limited
[{"type":"text","content":"\n \n\n\n\n\n\nRNS Number : 2720D Gem Diamonds Limited 21 March 2011 \n\n21 March 2011\n \nGem Diamonds Limited\n(\"Gem Diamonds\" or the \"Company\")\n \nStatement re press speculation\n \nGem Diamonds, a leading global diamond producer, notes the recent press speculation regarding Lucara Diamond Corp (\"Lucara\"). The Company confirms that as part of its ongoing review of potential value enhancing opportunities, it is in preliminary discussions with Lucara regarding a possible merger. These discussions are at a very early stage and there can be no certainty the contemplated merger will occur or of the timing or terms of any such transaction.\n \nAs stated in the Company's full year results announcement on 15 March 2011, Gem Diamonds continues to monitor potential value enhancing opportunities outside of its current asset portfolio and these preliminary discussions represent part of that ongoing strategy.\n \nBased on the most recently published full year financial and reserve statements of each company, any transaction would be likely to be classed as a reverse takeover under the UK Listing Rules due only to the relative ratio of current published reserves. Gem Diamonds therefore draws investors' attention to the following information: Lucara is listed on the TSX Venture Exchange under the symbol LUC. Lucara publishes periodic financial reports which are available under their profile at www.sedar.com and are also available on their website www.lucaradiamond.com. \n \nGem Diamonds expects to publish an updated statement of reserves and resources to include its Botswana project Gope at or before the time of the Company's interim management statement in April 2011.\n \nShareholders are advised that there can be no certainty that the discussions between Gem Diamonds and Lucara will lead to any agreement concerning a possible merger or as to the timing or terms of any such agreement and there can be no assurance that, even if reached, any such transaction would be completed. A further announcement will be made if appropriate.\n \nFor further information please contact:\n \nGem Diamonds\nClifford Elphick, Chief Executive Officer\nGlenn Turner, Chief Commercial and Legal Officer\nRichard Chetwode, Investor Relations \nTel: +44 (0) 20 3043 0280\n \nJ.P. Morgan C...