Irish diamonds and precious metals explorer and developer West African Diamonds has confirmed a possible takeover is in the pipeline.
The AIM-listed company said the approach, from an as yet unnamed third party, could lead to a takeover, and that due diligence is being conducted. A decision is expected within eight weeks.
West African Diamonds has a portfolio of mining projects in Guinea and Sierra Leone, and listed on the AIM in 2007.
The company said today it is scaling back its operations in Sierra Leone, due to the worsening security situation, although it will continue to work there. However, the firm is expanding its operations in Guinea, and has issued a £385,000 convertible loan at 17p per share to boost its short term working capital.