12th Jun 2008 08:51
12 June 2008
Lonrho Plc
("Lonrho")
LONRHO MINING SELLS NON-CORE ASSETS TO FOCUS
ON FLAGSHIP ANGOLAN DIAMOND PROJECT
Lonrho (AIM: LONR), the conglomerate with a structured portfolio of African investments, is pleased to announce that Lonrho Mining Ltd (formerly known as Nare Diamonds) owned 23.01% by Lonrho, has made the following announcement to the Australian Securities Exchange this morning:
HIGHLIGHTS:
Non-core assets sold to focus on Angolan diamond project
Company to diversify into other minerals in southern Africa with focus on bulk commodities
Aims to become significant resources developer and producer on African continent
AIM listing deferred until second half of 2008
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.
ENDS
LONRHO ENQUIRIES
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Lonrho Plc |
+44 (0)20 7016 5105 |
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David Lenigas, Executive Chairman |
+44 (0)7881 825 378 |
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Geoffrey White, Chief Executive Officer |
+44 (0)7717 307 308 |
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Emma de Borchgrave, Executive Director |
+44 (0)7867 785 177 |
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Pelham PR |
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Charles Vivian |
+44 (0) 20 7743 6672 |
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+44 (0) 7977 297903 |
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James MacFarlane |
+44 (0) 20 7743 6375 |
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+44 (0) 7841 672831 |
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Collins Stewart Europe : NOMAD to Lonrho |
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Hugh Field / Simon Alston |
+44 (0) 20 7523 8350 |
NOTES TO EDITORS
Background
The Kamfersdam project in Kimberley includes an underground kimberlite pipe and two tailings dumps.
The Company's flagship project is the Lulo Diamond Concession located in north eastern Angola. The Company recently announced the identification of 217 magnetic anomalies from a helicopter borne aeromagnetic and radiometric survey conducted at Lulo. Other diamond operators in this region have reported that up to 75% of the targeted magnetic anomalies drilled are kimberlite pipes. Based on this comparison, approximately 160 of the anomalies on the Lulo concessions are likely to be kimberlites. Lulo is located in an area which many experts believe will become a prolific region for the production of diamonds. Petra Diamonds Alto Cuilo and Luangue projects, borders the Lulo Diamond Concession to the east. Petra Diamonds has announced that more than 70 kimberlite pipes have been found on Alto Cuilo, the largest of which is 175 hectares in size and is currently being evaluated with encouraging results received to date.
Lulo is also in close proximity to the Catoca Mine, one of the largest kimberlite diamond mines in the world, which produces 60% of Angola's diamond production and is located 90km east of the Lulo Diamond Concession. The Catoca mine produced approximately 7 million carats in 2007.
In addition, the Company owns interests in three other South African diamond exploration projects, the Schmidtsdrift alluvial mine, the Groen River prospect and the Klipspringer Joint Venture.
For more information please visit: www.lonrhomining.com.
About LONRHO:
Lonrho Plc is an expanding conglomerate that is rapidly growing a successful business throughout Africa. The Company's shares are traded on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure, transportation, support services, hotels and natural resources. The Company has over 19,000 shareholders and substantial institutional backing to support its mandate to build a profitable business that plays a fundamental role in the development of the African economy.
Since 2006, the Company has invested in or acquired control of:
Hotel Cardoso - www.hotelcardoso.co.mz (retained)
Lonrho Mining - www.lonrhomining.com
Luba Freeport - www.lubafreeport.com
Fly540 - www.fly540.com
Swissta Holdings - www.swissta.com
SA Independent Liner Services - www.saliners.com
Bytes and Pieces www.bytespieces.com
Kwikbuild - www.e-kwikbuild.co.za
LonZim - www.lonzim.co.uk
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Lonrho