Sunday, July 22, 2007

Three in a bed of Roses - Pnina Feldman

Minerals Gazette April 1998

Diamond explorer and pittado miner, Diamond Rose NL has set its sights on two West Australian diamond explorers, Stiker Resources NL and Dioro Exploration NL. If successful, the takeover will represent a major expansion of Diamond Rose’s position in the North Kimberley region of Western Australia.

The bid is linked with the problems besetting Striker’s majority (20%) shareholder, Australian Gold Fields NL, which has fallen into administration after disputes with financiers Prudential Bache International and Rothschild Australia over silver forwards.

Diamond Rose proposes to offer one share in Diamond Rose for every ten Striker shares. If Diamond Rose were to acquire 100% of Striker this would result in the issue of 10,194,085 new Diamond Rose shares (if no options are exercised) taking the issued capital of Diamond Rose to 133,604,924 shares.

The 1-for-10 scrip offer for Striker values the company at $5.1 million, nearly half its market value of $9 million.

Both offers are subject to a minimum acceptance of 50.1%. In the case of Striker the offer states that none of Striker’s financiers, including Australian Gold Fields, can demand repayment of any loan facilities.

Dioro shareholders will be offered six Diamond Rose shares for one Dioro share, valuing the target at $4,954,091 compared to its present value of $3.69 million.

The December agreement between Diamond Rose and Dioro, in which Diamond Rose agreed to earn a range of interests in the King George and Casuarina tenements by paying $1.25 million and agreeing to spend $2.5 million on exploration, has been rescinded.

If Diamond Rose acquired 100% of Dioro this would result in the issue of 9 million new Diamond Rose shares lifting the issued capital to 133,319,022 shares.

Diamond Rose is currently evaluating Dighem survey anomalies at Striker’s Upper Beta Creek where at least four kimberlite pipes have been discovered by recent drilling and sampling, including Ashmore 1 and 2. Striker announced in December that it would commence a mining feasibility on the latter two pipes to assess their commercial potential.

Diamond Rose said the application of its resources to the area would be of immense benefit to shareholders.

Yes we have no Pittado

While most miners have been swimming against the tide in recent times, pioneering pittado miner, Diamond Rose NL, seems to have made a nice little earner out of their “unique” gemstone.

Following last year’s successful sale of one kilogram of Pittado to a US home shopping TV network. American viewers will be abe to get their Pittado in pieces of jewellery thanks to a distribution and marketing deal with US jewellery giant, Clyde Duneier Inc.

Duneier, one of the largest privately owned manufacturers of jewellery in the United States, will be developing a range of jewellery using the Pittado gemstones, and naming if “the Diamond Rose Collection”.

The gemstones, which hail from the company’s Rocklea project in Western Australia’s Pilbara region are said to be green quartzite and are similar in appearance to jade.

Duneier plans to introduce Diamond Rose’s gemstones to world markets and will market the range in the United States, Canada and Japan through television promotion on television shopping networks and retail outlets.

The first US national television broadcast is planned to air by August 1998 and will feature gold and silver jewellery featuring pittado.

Diamond Rose said that as a result of this agreement it is anticipated that the company will show an increase in gross revenues of a minimum of US$4 million over the next 18 months.

Diamond Rose Chairperson, Pnina Feldman, said: “The Diamond Rose story lends itself to home shopping style of presentation of a company and its products. Our company has a colourful and rich background which will complement the appeal of our uniquely Australian products.

“Focusing on the gemstones’ association with Australia and Australian culture provides a unique selling point to the United States market.”

Commenting on the agreement, Duneier’s President, Marc Duneier, said: “It is very rare that a new gemstone is discovered that has such an extensive appeal.

“Pittado has a deep magic green colour that appeals across all market sectors and is ideal for television promotion”

“The Australian connection adds myth and mystery – the stone and the country have a great story to tell and we will be promoting the Diamond Rose Collection at a time of strong consumer attention and interest in Australia.”