GIA Discovers Counterfeit Report

RAPAPORT… The Gemological Institute of America (GIA) traced a counterfeit GIA report found in Hong Kong back to Antwerp. The fraudulent document has since been taken out of circulation.

A close examination of the document revealed that its color, font and background did not match that of an authentic GIA report. The report number did not correspond with the stone, though this number was an actual report number for a different stone. The diamond in this case, which was of lower quality, appeared to have been cut to match the original GIA information.

GIA urged the trade and the public to use Report Check, which it touts as the most effective way to identify counterfeit reports. Report Check is available for diamonds graded between January 1, 2000 and the present. More information can be found at www.gia.edu/reportcheck.

Zale Asks Vendors to Buy Its Inventory

In an effort to raise cash, Zale Corporation reportedly requested that diamond merchants and other vendors purchase some of its old inventory in exchange for an assurance that Zale would order twice as much merchandise from them in 2010. The Wall Street Journal reported that vendors are hesitant to agree to this proposal, however.

Soon afterward, Zale announced that it had hired the Peter J. Solomon Company to help it identify areas where its financial position can be strengthened. Solomon is an independent investment banking advisory firm servicing the retail industry.

Apollo Management is interested in taking a slice of Zale, which the private equity firm once held a minority stake in, The Wall Street Journal reported, citing people familiar with the matter.

The proposal made by Apollo is one of several Zale has received, The Journal said. Under the terms of the buyout shop’s plan, Apollo would put together its own management team, headed up by former Zale chief executive officer (CEO) Robert DiNicola, according to the newspaper.

— Additional reporting provided by Acquire Media..

Stornoway Announces Equity Financing

Stornoway Diamond Corporation has filed a preliminary prospectus regarding an overnight, marketed public offering of common shares in each province of Canada. The offering of 23,000,000 common shares will be led by Canaccord Financial and these shares will be available in the U.S. for 50 cents — for a targeted total of $11.5 million — through private placements to qualified institutional buyers and accredited institutional investors. The net proceeds will be used to complete a feasibility study and conduct exploration activities for the company’s Renard diamond project, as well as for general working capital.

At press time, the closing was anticipated to occur on or before February 23, 2010, subject to the applicable regulatory approvals, including that of the Toronto Stock Exchange (TSX). The securities will not be registered under the U.S. Securities Act of 1933 or under any state securities laws and thus cannot be offered, sold or delivered in the U.S.

Man Arrested in Bridges Murder Case

The man alleged to have plotted the murder of gemologist Campbell Bridges and the attack on his son Bruce and four colleagues was arrested in Nairobi, Kenya on February 8, according to a statement provided by the International Colored Gemstone Association (ICA). Bridges was a founding member, as well as a board member, of the ICA and is credited with discovering tsavorite and introducing tanzanite to the global market.

Details on the charges were not yet available, according to the ICA. But sources close to the Bridges family reported that a member of the Bridges’ private security force apprehended Daniel M. Mnene, commonly known as “Suleiman,” and held him until police arrived. The statement added that Mnene is believed to be behind the attempted takeover of the Bridges’ mining concessions.