XLD Xceldiam

RNS Number:2315S
Xceldiam Limited
02 March 2007



                                Xceldiam Limited
                         ("Xceldiam" or the "Company")

                      Notification of Investing Strategy
              and notice of Extraordinary General Meeting ("EGM")

Following the joint announcement made by the Company and Petra Diamonds Limited
("Petra") on 1 March 2007 (the "Joint Announcement"), Xceldiam confirms that a
notice of Extraordinary General Meeting ("the EGM") including an explanatory
letter from the Xceldiam Board, has been dispatched to its shareholders today to
convene an EGM to be held at the registered office of Xceldiam at Clarendon
House, 2 Church Street, Hamilton,  HM 11 Bermuda at 9:00 a.m. (Atlantic DST) on
19 March 2007.


EGM Notice

As set out in the Joint Announcement, the EGM Notice includes three ordinary
resolutions ("the Resolutions") as set out below;



(i)       that the proposed disposal of Frannor Investments and Finance Limited
("Frannor BVI") (the "Disposal") to Petra be approved;



(ii)     that the Xceldiam investing strategy as set out in the Xceldiam
circular, and also set out below, be approved; and



(iii)    that the interim dividend in specie of the 19,674,584 Petra shares be
approved and declared payable to Xceldiam shareholders on record as at 9 March
2007 in proportion to the number of shares held by such Xceldiam shareholders.





Investing Strategy

Xceldiam confirms that subject to completion of the Disposal, it will become an
Investing Company for the purposes of the AIM Rules, as it will hold no assets
other than cash of US$1.25million. In accordance with AIM Rule 15, the Company's
proposed investing strategy, which is also subject to approval at the Company's
EGM, is set out below.



The US$1.25 million cash reserves in Xceldiam, less the Company's operating
costs over the next 12 months, which are expected to be approximately
US$600,000, will be invested by the directors as follows, whereby the Company
will:



*         either (i) invest by way of purchasing shares in diamond companies, or
other resource opportunities, which hold exploration or mining licences in the
sub-Saharan region of Africa, most notably the Democratic Republic of Congo ("
DRC"), or (ii) acquire the assets held by these companies. The recent democratic
elections in the DRC, and the revision of its mining legislation, makes this
country in the opinion of Michael Nunn and Mark Summers (being the remaining
directors after completion of the Disposal) (the "Remaining Directors") a good
target for exploration and mining activities;



*         make an investment or acquisition within 12 months of the date of the
EGM, failing which it will return all funds held by the Company to its
shareholders by way of dividend;



*         make only one or two key investments or acquisitions with the funds it
currently holds;



*         if it chooses to invest, by way of purchase of shares, rather than by
way of acquisition of assets it will be an active investor in the way that it
manages those investments; and



*         if it chooses to acquire further assets it will be the intention of
Xceldiam to initially rely on the corporate finance, legal and geological skills
base along with the investor base that is available from companies associated
with Michael Nunn to facilitate initial assessment of new projects and
investments. Following which, Xceldiam will appoint full time staff to the
projects should it be deemed appropriate.



The Remaining Directors have the following expertise in respect of evaluating
and acting on the investing strategy:



-          Michael Nunn is a South African mining entrepreneur, recognized as
the pioneer of the worldwide tanzanite industry. He was the founder and CEO of
AIM quoted Tanzanite One and remains the major shareholder. Mike also founded
and developed Afgem Limited of which he is also the major shareholder. Mike is
currently Chairman and CEO of AMARI (African Mining and Resource Investments)
which he founded in 2006 to consolidate his various mining interests and pursue
a wide spectrum of resource opportunities throughout Africa. He is the founding
member of Xceldiam.



-          Mark Summers is a chartered accountant and a chartered management
accountant. After completing his articles at Coopers and Lybrand, Mark joined
Anglo American's Corporate and International Finance Department and from 1999 to
2002 was an associate director in the Mining Corporate Finance division at HSBC,
where his corporate clients included Afgem, De Beers, Kroondal Platinum and the
Industrial Development Corporation of South Africa. Mark is Chief Financial
Officer of Afgem, a position he has held since 2002 and is also the Chief
Financial Officer of Tanzanite One



Due diligence work will be carried out on potential targets by independent
professional mining consultants



To date, various discussions and technical visits have been undertaken focusing
on a near production diamond exploration projects in the DRC in close proximity
to Mbuji Mayi, an area well known for its diamondiferous kimberlite fields.
Previous studies by SRK and other mining companies have also been reviewed as
part of the Company's evaluation process.



Overview



Following completion of the Disposal, which is still conditional upon approval
of the shareholders of the Company at the EGM, Xceldiam has to make an
acquisition or acquisitions which constitute a reverse takeover under the AIM
Rules or otherwise implement its investing strategy to the satisfaction of the
London Stock Exchange plc within twelve months of having received the consent of
its shareholders at the EGM, otherwise its shares will be suspended, pending
cancellation of its admission to AIM.





For further information please contact


WH Ireland Limited                                    Tel: 0161 832 2174
David Youngman/Katy Mitchell

Xceldiam Limited                                                                                         
Tim George                                            Tel:+27 83 573 4199
                                                                                                 






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