31st May 2005 09:04
Dwyka Diamonds Limited31 May 2005 Dwyka Diamonds Limited De Beers diamond tailings retreatment project The Directors of Dwyka Diamonds Limited ("Dwyka" or "the Company") are pleasedto announce that, together with BEE partner Kolong Investments, they haveentered into an agreement with De Beers to retreat diamond tailings from DeBeers' Kimberley mines. The agreement is significant for Dwyka as it will create early and sustainableprofits, leveraging off Dwyka's expertise in the design and construction ofefficient and effective diamond processing plants. Importantly the project with De Beers allows for agreed monthly tonnages to beprocessed, guaranteed diamond feed grades and set diamond prices. The partnersexpect that feed tonnages will be increased rapidly subject to the plantperforming to high efficiency levels. Dwyka will hold its 40 per cent. equity in the project through its wholly ownedsubsidiary company, Supermix (Pty) Ltd and operate under the entity Superkolong(Pty) Ltd. The capital cost of the project is R20 million and is expected to befunded via bank debt. Dwyka's share of the profits will be determined oncefunding agreements have been finalised. Technical talks with De Beers have beenunderway for a number of months and construction of the plant has alreadycommenced. First production is expected in November 2005. The project isexpected to produce in excess of US$1 million annualised profit in year one,with significant upside potential possible from increased tonnages from DeBeers. Commenting on the project, Dwyka CEO and director of Superkolong, MelissaSturgess said "The tailings project will provide the partnership with asignificant high-margin revenue stream supported by De Beers and itslong-established operations at Kimberley. We have the opportunity, together withKolong, to build our relationship with De Beers and demonstrate our capabilityin operating profitable diamond extraction operations." For further information please contact: In Australia: In United Kingdom:-------------------------- -------------------------Melissa Sturgess Laurence Read/ Leesa Peters-------------------------- -------------------------Dwyka Diamonds Limited Conduit PR-------------------------- -------------------------(+618) 9324 2955 +44 (0)20 7936 9095 / +44 (0)7979 955 923-------------------------- ------------------------- -------------------------- ------------------------- www.dwykadiamonds.com ------------------------------------------------ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Nyota Minerals