Sunday, May 17, 2009

Gutnick In takeover Bid for North Australian Diamonds

According to the Australian newspaper The Age, Australian millionaire Joseph Gutnick is currently involved in a takeover bid for North Australia Diamonds valued at $24 million.

Twenty-one years ago, the Lubavitcher Rebbe told Gutnick that he would make discoveries of gold and diamonds within five years.

The Rebbe’s prediction of gold discoveries came true, but the late Rebbe's prophecy regarding diamonds failed to materialize despite exploration work by Gutnick's companies.

Last week Gutnick made a bid to acquire all of North Australian Diamonds. The company's main asset is the Merlin diamond project, situated in Australia’s Northern Territory.

The formerly listed Ashton Mining discovered the diamonds at the site and Rio Tinto sold it to North Australian Diamonds in 2004 after the latter took over Ashton.

Previous mining operations at Merlin produced 507,000 carats of diamonds including Australia's biggest diamond, weighing 104.73 carats and valued at over $500,000 in 2002.

Gutnick's cash bid for the diamond project is being made through Legend International Holdings, a Delaware-domiciled company that is listed in the US.

Gutnick's interests already control North Australian Diamonds with about 34% of the capital, held by Legend and another Gutnick entity, Yahalom International Resources Corporation.

Source: Steven Silverstein

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