Irish entrepreneur John Teeling’s West African Diamonds says it has received a potential takeover approach from an unnamed company.

The AIM-quoted explorer, focused on Guinea and Sierra Leone, has signed a ‘non-binding’ memorandum of understanding with its anonymous suitor, which is now carrying out due diligence. West African says it expects a conclusion ‘within eight weeks’.

The company also reports that it is expanding activities in Guinea, where it has obtained ‘positive operational results’, but scaling back in Sierra Leone because of a ‘deteriorating security situation’ and ‘disappointing results’ at its plant there. The shares, which reached 30p in April last year, are 3p up today at 16.75p, valuing the company at £6.8 million.

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West African Diamonds	AIM	£3.05m	5.25p	0.00p
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Timis in new gem move			23/10/2008
Gem group in talks			25/06/2008
Teeling’s toast			21/02/2008
Newcomer - West African Diamonds			05/01/2007