West Perth-based diamond explorer Lonrho Mining Ltd has deferred its listing on London's Alternative Investment market as it finalises the sale of it non-core assets and acquisition negotiations.
West Perth-based diamond explorer Lonrho Mining Ltd has deferred its listing on London's Alternative Investment market as it finalises the sale of it non-core assets and acquisition negotiations.
The company had previously stated that it planned to list on AIM earlier this year, however that had not been delayed to the second half of this year.
The company said it was selling its non-core assets to focus on developing its flagship Angolan Lulo diamond project and to also pursue a diversification strategy into Africa.
Meanwhile director Bêrend van Deventer will resign due to his increased business commitments in South Africa.
A copy of the announcement is pasted below
Australian-based diamond exploration and development company Lonrho Mining Limited (ASX: LOM) ("Lonrho Mining" or the "Company"), today announced it was selling some of its diamond exploration assets to focus on developing its flagship Angolan Lulo diamond project and pursue a diversification strategy into southern Africa.
In November 2007, the Company agreed to sell certain tailings dumps near Kimberley in South Africa and its Kamfersdam new order prospecting rights to Meepo Investment Consortium (Pty) Ltd for A$3.7 million (see announcements dated 15 and 28 November 2007).
De Beers has approved the sale of the tailings dumps which was a condition of the transaction.
Completion of the sale of the new order prospecting rights will also now occur subject to receiving final approval of that transaction from the Department of Minerals and Energy. The sale of these smaller non-core assets is part of Lonrho's strategy to focus its management efforts on developing the highly prospective Lulo Diamond Project in Angola. It is also a milestone in the Company's overall business strategy to expand its African footprint by becoming a significant resources developer and producer on the African continent.
Already this year, the Company has reviewed a number of bulk commodity projects located in southern Africa and will progress negotiations subject to finalising due diligence. Shareholders are advised to exercise caution as the outcome of these negotiations may have a material impact on the Company's share price although no assurances can be given that these negotiations will lead to a concluded transaction.
The Board has also decided to defer the Company's proposed AIM listing until later this year so it can finalise the sale of its non-core assets and finalise negotiations in relation to the acquisition of any new project in accordance with this diversification strategy. Importantly, this will allow the initial bulk sampling program of the alluvials at the Lulo Diamond Project to be completed prior to the Company's AIM listing.
Finally, Mr Bêrend van Deventer has advised the Company of his intention to resign as a Board Director due to his increased business commitments in South Africa. Mr Van Deventer will step down from the Board at the completion of his six-month notice period. The Board wishes to thank Mr van Deventer for his very substantial contribution to the Company.
