DiamondWorks completes Lyndhurst transaction

Following a 20-to-1 share consolidation, DiamondWorks (dmw-t) has completed a restructuring agreement with Lyndhurst, a privately held, British-based mining holding company.

Under the deal, DiamondWorks issued more than 32.7 million post-consolidation shares to Lyndhurst, bringing Lyndhurst’s holding in DiamondWorks to about 34.6 million shares, or 66.3% of all outstanding shares.

In return, DiamondWorks acquires two Lyndhurst subsidiaries, Central African Mining Co. and Central African Diamond Co. Lyndhurst also assumes US$1.9 million of debt owed by DiamondWorks to its creditors.

As part of the deal, DiamondWorks creditors agreed to convert at least US$15 million of DiamondWorks debt into DMW shares at a rate of no less than C$4 per share. Concurrent with the closing of the Lyndhurst transaction, debt totalling more than US$21 million was converted into 7.9 million post-consolidated DMW shares.

With the Lyndhurst deal complete, DMW now intends to complete all remaining requirements for reinstatement to trading on the Toronto Stock Exchange. Requirements include the conversion of at least US$15 million of debt into shares and the completion of audited financial statements for the year ended Nov. 30, 2000.

The company has been granted an extension to April 11, 2001, to complete the requirements.