gets congo diamonds, page-5

re: gets congo diamonds/stolwyk please So much for speculation.

Gravity gets BHP's Congo diamond assets

Michael Quinn


Thursday, August 12, 2004
GRAVITY Capital is about to announce a strategic alliance with BHP Billiton covering diamond projects in the often volatile Democratic Republic of Congo.

The deal has been in the making for some months, and essentially involves the vending of BHPB's Congo diamond interests into Gravity – to be renamed Gravity Diamonds – which will then carry out the exploration on the basis that BHPB retains buy-back rights for deposits of a size to pique the major's interest.

Gravity Diamonds will hold all the Australian diamond interests of Gravity Capital, including a 40% stake in the unlisted Diamond Mines of Australia. Gravity also intends acquiring the remaining 60% in DMA.

Gravity's non-diamond interests, including various joint ventures and 100% owned ground in the Gawler Craton are to be spun out into a new company.

Gravity's access to BHPB's Falcon gravity gradiometer technology will reside with Gravity Diamonds.

The DRC has re-attracted a number of major mining companies over the last 12 months, amongst them AngloGold, which said last month that it was re-starting exploration at a major gold project it holds in the country.

Gravity requested a trading halt this morning, with its shares at 42c. The stock was trading at around 23c in mid-June.