15/11/2007 - 14:09

Lonhro to sell tailings dumps for $1.1m

15/11/2007 - 14:09

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West Perth-based Lonrho Mining Ltd will sell its Kamfersdam tailings dumps in South Africa to South Africa-based Meepo Investment Consortium Pty Ltd for around $1.1 million, the company has announced.

Lonhro to sell tailings dumps for $1.1m

West Perth-based Lonrho Mining Ltd will sell its Kamfersdam tailings dumps in South Africa to South Africa-based Meepo Investment Consortium Pty Ltd for around $1.1 million, the company has announced.

 

 

The full text of a company announcement is pasted below

Australian based diamond exploration and development company Lonrho Mining Limited (ASX: LOM) will further focus management efforts on the recently acquired Lulo project in Angola following confirmation the company has concluded an agreement with Meepo Investment Consortium (Propriety) Limited ('Meepo") for the sale of its tailings dumps situated on the Kamfersdam property in South Africa for R6.5M (approx A$1.1M).

Meepo was previously appointed as independent contractor to prospect for diamonds on the mine tailings dumps.

The Company via its wholly owned subsidiary, New Diamond Corporation (Pty) Ltd ("NDC") signed an agreement with Meepo for the sale of the north and south dump and the fixed property on which the south dump is situated ("Sale Assets").

In terms of this agreement Meepo acquires the Sale Assets and takes over all rehabilitation liabilities relating to the dumps. The purchase consideration for the Sale Assets and rehabilitation liabilities is an amount of R 6.5 million (approximately A$1.1M).

The agreement is subject to obtaining the written consent of De Beers Consolidated Mines Limited ("De Beers") to enter into this agreement, as required by the sale of assets agreement entered into between De Beers and NDC on 4 October 2002 and the subsequent addendum to the sale of assets agreement signed 10 May 2005. In the event that De Beers agrees to the disposal of the Sale Assets, De Beers will be entitled to 50% of the consideration from the sale.

Commenting on the sale, Charles Mostert, CEO, stated:

"Due to the significance of the recently acquired Lulo project in Angola and its immense potential, a decision was taken to dispose of the smaller assets within the Company. This will ensure that management's efforts are focussed on the assets with the highest potential."

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