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Diamond Core share price weakness short-term - Simon Village
In an interview on Radio 2000 @ 18:30 on Wednesday, 5 December 2007
[miningmx.com] -- THE slide in Diamond Core's share price was temporary, said Simon Village, the well-known mining executive who is to become chairman of BRC DiamondCore, a merger between Diamond Core and Toronto's BRC Diamond Corp. Village said the merger was 'imminent'.
"It’s taken us longer than we anticipated," said Village of the merger proposal. "We had to complete a number of actions at once."
This included making an offer to Diamond Core shareholders in South Africa, said Village. "We are still very excited about it."
BRC and Diamond Core unveiled the takeover by BRC of Diamond Core in a 1:24.5 share transaction. The merged entity will have a primary listing on the Toronto bourse’s main board and a secondary listing on the JSE.
There will be 25.7 million shares in issue and it will have an implied market capitalisation of C$180m. The transaction has taken six
months so far.
Speaking on the Moneyweb Power Hour, a week-nightly radio broadcast, Village said the decline of Diamond Core's share price, which recently dropped from R160 to R130/share, was mainly due to 'fatigue'.
"I think the share price is declining on the basis of fatigue because we haven't been outspoken about the merger," he said. "But this is a short-term issue. The share price will recover."
Commenting on acquisitions, Village said the company had had its hands full with the proposed merger. "But our vision is to build something sustainable and post this merger we will look at acquiring some assets.
"We have a team of people who are currently looking at due diligence of the assets we are targeting," said Village.
Village said the company's growth philosophy was not to look at 'distressed situations' but to rather grow organically. This is a key reason why Diamond Corp was not interested in bidding for mines De Beers Consolidated Mines
was selling.
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