21st Nov 2013 11:16
LONDON (Alliance News) - Richland Resources Ltd Thursday said it has sold its Dubai office for USD650,000, well above what the property was valued at in the gemstones producer and developer's half-yearly report.
Richland said the net sale proceeds from the sale of its Dubai marketing and rough-gemstone sales office was approximately USD640,000 after deducting costs and taxes.
Richland said it valued the property at approximately USD402,000 in its half-yearly results, which means it will book an accounting gain of USD238,000.
A limited-term leaseback has been agreed with the buyer of the Dubai office, which will be rented for six months for a total of USD45,500. The sum has been prepaid from the net sale proceeds from the sale of the Dubai Office.
The gemstones producer and developer said the Dubai office, which was bought in 2007, was sold as it is non-essential to its strategy.
"Working with the Tanzania Government we have successfully established an in-country cutting and polishing operation that allows Richland to deliver beneficiated stones to its customers. Consequently marketing and sale of rough gemstones through the Dubai office has been wound down with the company being able to realize cash from today's sale," Bernard Olivier, chief executive, said in a statement.
Richland shares were Thursday quoted at 8.25 pence, up 3.1%.
By Samuel Agini; [email protected]; @samuelagini
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