Sunday, July 22, 2007

Shareholders support Striker’s new lease of life

Australia’s Paydirt Magazine March 1999

Diamond explorer Striker Resources NL has given the Australian quest for another diamond mine a renewed dimension by getting shareholder approval for a $6 million placement.

The company, facing potential extinction a few months ago with low cash reserves, has sorted out earlier differences with Diamond Rose NL, and was expected to relist later this month.

The capital raising has some luminaries, as big blocks were taken up through Sydney business man and former FAI Insurance Ltd chief Rodney Adler and international market maker George Soros.

Diamond Rose has subscribed to $4.07 million, taking up 50.826 million shares and a similar number of options that will take its holding to 40.3% while FAI took up 12.5% stake.

Striker’s managing director Clayton Dodd told a shareholders meeting this month that Diamond Rose was well advanced on raising the additional capital.

Dodd said Striker can now accelerate exploration work on its North Kimberley prospects where a big focus will be placed on the Ashmore and Seppelt diamondiferous pipes.

Diamond Rose’s chairwoman, Pnina Feldman, said the outcome was a win for all sides.

Striker’s new chairman is Tim Mainprize.

If all placement options and the option facility were exercised by September 30,2002, a further $24.65 million would be generated for Striker.