Teeling to resign from diamonds board as reverse takeover approved

John Teeling will resign his position as Chairman of West African Diamonds (WAD) on February 22 as shareholders approve the reverse takeover by Stellar Diamonds.

Teeling formed WAD from West African assets of AIM-listed African Diamonds in October 2006.

Since the demerger from African Diamonds, WAD has added further licences to its existing Guinea portfolio as well as developing projects in Sierra Leone.

Teeling said: "I wish the new board and management every success. They have a good platform on which to build a serious African based diamond mining company.

"There is further potential in the two producing mines, while the four kimberlite prospects are exciting. Diamond prices have shown a rapid recovery, which will help cash flow. This, plus the £5m cash raised, will offer opportunities for organic and acquisitive growth."

WAD and Stellar Diamonds have merged into a new entity to be called Stellar Diamonds.

Existing WAD shares are being consolidated into Stellar Diamonds shares on a 5:1 basis. The merger was accompanied by a fresh fundraising of GBP£5m.

Trading in Stellar will begin on AIM on Monday, February 22, 2010.

A new board of directors will be appointed, while John Teeling, James Finn, Paul Nel and Alex van Zyl resign as of February 22, 2010.