Firestone Diamonds - Issue of Equity


RNS Number : 1642Z
  Firestone Diamonds PLC
  16 July 2008


Firestone Diamonds plc
Placing raises �5 million

LONDON: 16 July 2008
Firestone Diamonds plc, ('Firestone' or 'the Company'), the AIM-quoted Diamond
mining and exploration company (ticker: AIM:FDI), today announces that it has
placed 5,882,353 new ordinary shares of �0.2 each in the Company with
institutional and
other investors at a price of �0.85 per ordinary share to raise �5 million
before expenses (the 'Placing').  These new ordinary shares will rank pari passu
in all respects with the existing ordinary shares in the Company. Application
will be
made for the new ordinary shares to be admitted to trading on AIM, and it is
expected that trading will commence at 8:00 am on 22 July 2008.  The proceeds of
the Placing will be used to accelerate evaluation work at the Company's BK11,
BK16 and Tsabong
projects in Botswana.

BK11 and BK16 (Orapa)
As stated in the Company's announcement of 26 June 2008, bulk sampling results
from BK11 have been very positive and the Company now intends to significantly
increase the speed of its evaluation work on BK11. The Company plans to carry
out
approximately 4,500 metres of percussion, core and large diameter drilling on
BK11 and to recover and process approximately 1,000 tonnes of kimberlite, from
which between 100-150 carats is expected to be recovered.

The Company recently entered into an agreement under which it can earn an 87.5%
interest in the BK16 kimberlite, which is located 20 kilometres from BK11. The
Company believes that BK16 has similar economic potential to BK11. The Company
intends to
carry out a similar programme to that planned for BK11, with approximately 4,000
metres of percussion, core and large diameter drilling to be carried out and
approximately 1,000 tonnes of kimberlite to be recovered and processed.

The work planned on BK11 and BK16 is expected to enable an Inferred Resource to
be defined on both kimberlites.

Tsabong
The Company intends to accelerate evaluation work at its Tsabong project, where
it has identified 14 high interest kimberlites for bulk sampling by large
diameter drilling.  The pace of work will increase significantly in the second
half of 2008, with
large diameter drilling on all 14 high interest kimberlites expected to be
completed and samples processed by the end of the year.  Results from sampling
on MK1 and a number of the other high interest kimberlites are expected to be
released in Q3 2008.

For further information:
Visit the Company's web site at www.firestonediamonds.com, or contact:

    Philip Kenny, Firestone Diamonds                                               +44 20 8834 1028/+44 7831 324 645
    Leesa Peters, Conduit PR                                                          +44 20 7429 6600/ +44 7812 159 885
    Mike Jones/Ryan Gaffney, Canaccord Adams (Joint Broker)                                      +44 20 7050 6500
    Jerry Keen, Blue Oar (Joint Broker)                                              +44 20 7448 4492/+44 777 069 7358
    Ken Fleming, Brewin Dolphin (Nominated Adviser)                         +44 141 221 7733/+44 7971 835 070

Note:  The information in this statement has been reviewed by Mr. Tim Wilkes, B
Sc, Pr Sci Nat, who is a qualified person for the purposes of the AIM Guidance
Note for Mining, Oil and Gas Companies. Mr. Wilkes is Chief Operating Officer of
Firestone
Diamonds plc and has over 27 years experience in Diamond exploration, mineral
resource management and mining.  Mr. Wilkes is a member of the sub-committee for
diamonds of the South African Mineral Resource Committee (SAMREC).


Background information on Firestone Diamonds:
AIM quoted Firestone Diamonds plc ('FDI.L') is an international Diamond mining
and exploration company with operations in Botswana and South Africa.  Botswana
is the world's largest and lowest cost producer of diamonds, with annual
production worth
over $2.5 billion, and is considered to be one of the most prospective countries
in the world to explore for diamonds.

Firestone is the largest holder of mineral rights in Botswana's diamondiferous
kimberlite fields, controlling over 29,000 square kilometres around the major
Orapa and Jwaneng mines and the entire Tsabong kimberlite field. Firestone has
95 kimberlites
in its portfolio, of which 24 have been proven to be diamondiferous and 16 are
currently at bulk sampling stage.  Firestone's mining operations in South Africa
include a toll treatment operation in joint venture with De Beers at the Bonte
Koe Mine.

Background information on Orapa:
The Orapa kimberlite field is located in northern Botswana and contains the
Orapa, Letlhakane and Damtshaa mines. The Orapa Mine is the largest Diamond mine
in the world.  With 8 economic kimberlites out of 75, the Orapa field has an
economic ratio of
more than 10%, one of the highest in the world.  Access to the area is via
tarred road from Gaborone and infrastructure in the area is very good.

Background information on Tsabong:
The Tsabong kimberlite field is located in south western Botswana, approximately
280 km south west of the Jwaneng Mine, which is the world's most profitable
Diamond mine. Tsabong is one of the largest diamondiferous kimberlite fields in
the world,
containing 85 known kimberlites, of which 18 have been proven to be
diamondiferous. Tsabong is noted for the exceptionally large size of many of its
kimberlites, in particular the 180 hectare MK1 kimberlite, which is one of the
largest known
diamondiferous kimberlites. The Tsabong field also contains 5 kimberlites larger
than 50 hectares and 32 kimberlites between 20 and 50 hectares in size.  Access
to the area is via tarred road from Gaborone and infrastructure in the area is
good.


This information is provided by RNS
The company news service from the London Stock Exchange

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