DWY dwyka resources limited

little boy target.. swallow please

  1. 309 Posts.
    I got some Shares in this Coy, after reading this Announcement, and after following its Progress, from a Mate who was given some sound advice re Moves, and possible takeover By Big Coy's. See Below, Does anyone have an opinion of this stock

    Dwyka, BHP Billiton to look for diamonds in India
    14:41, Wednesday, 6 November 2002

    Sydney - Wednesday - November 6: (RWE) - Dwyka Diamonds Ltd has
    signed an alliance agreement with BHP Billiton to explore for and
    develop hard rock diamond deposits in India.
    During the exploration and early evaluation stages BHP Billiton
    will fund 15 per cent of the exploration costs by way of subscription
    for Dwyka shares.
    Also, Antwerp-based Rosy Blue NV, one of the world's largest
    diamond trading and manufacturing companies, will become a shareholder
    in Dwyka.
    Under the Indian Government's new national mineral policy,
    exploration of previously 'reserved' minerals was now allowed by the
    private sector, Dwyka said.
    As a result, there has been a 'diamond rush' into India by the
    major players, notably De Beers, Rio Tinto, BHP Billiton and Ashton.
    The Dwyka/BHP Billiton alliance covers some 55,000 square
    kilometres of prospective ground in a combination of approved BHP
    Billiton licences and licence applications.
    The alliance also covers a further 6500 square kilometres of
    licence area on which BHP Billiton has been working for two years, which
    Dwyka will acquire from Captain SP Singh.
    Four known diamondiferous kimberlites have been identified in
    this area and these will comprise the immediate targets of the alliance.
    Until the program's Steering Committee makes the decision to
    proceed to a 200 tonne kimberlite bulk sample on any of the targets, BHP
    Billiton has the right to 51 per cent ownership of the target by
    refunding 300 per cent to 500 per cent of Dwyka's historical cost
    relating to the target's project area.
    If BHP Billiton does not exercise its right, Dwyka retains 100
    per cent ownership of the licence.
    Once BHP Billiton decides to move to 51 per cent of the project,
    a joint venture between BHP Billiton and Dwyka will be formed under
    which BHP Billiton will be solely responsible for funding 100 per cent
    of development through to completion of a bankable feasibility study.
    Mine construction and development costs will be funded 51 per
    cent by BHP Billiton and 49 per cent by Dwyka and cashflow from mining
    will be split on the same basis.
    In addition to the BHP Billiton placement, Dwyka intends to
    place about 4 million shares, each with one free attaching option.
    Shares in Dwyka were up 4c to 60c while BHP Billiton rose 13c to
    $9.83 this afternoon.
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