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African Diamonds shareholders vote for takeover by Lucara

Last updated: 12:39 26 Nov 2010 EST, First published: 13:39 26 Nov 2010 EST

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The sale of African Diamonds (LON:AFD) to Lucara Diamonds (TSX-V:LUC) moved a step closer today, after AFD shareholders voted in favour of the deal.

Last month the company recommended the £51 million takeover bid from its joint venture partner. AFD and Lucara are currently developing the AK6 diamond mine in Botswana.

Lucara will take full ownership of AK6, and African Diamonds’ other exploration assets will be spun-out into a new and separate entity - Botswana Exploration.

African Diamonds shareholders will receive 0.8 Lucara shares and 1 Botswana Exploration shares for each share held.

"I am pleased that the shareholders have resoundingly voted in support of the sale of African Diamonds to Lucara,” chairman John Teeling said.

“The transaction should complete in early January 2011 when shareholders will receive both their Lucara and Botswana Diamonds shares.”  

“We hope to list Botswana Diamonds on AIM during January 2011".

Back in October the AFD boss said the logic of the deal is compelling.

“Marrying AFD and Lucara will create a C$240 million emerging diamond producer controlling two new kimberlite diamond mines,” Teeling said in October.

“AFD shareholders win in three ways, they will hold an indirect stake in AK6 ... they get 26.57% of the Lucara interest in the high diamond value Mothae mine ... and they will get 100% of Botswana Exploration.”

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