8th Dec 2009 15:11
08 December 2009
GEM DIAMONDS LIMITED
("Gem Diamonds" or the "Company")
GEM DIAMONDS SALE OF ASSETS IN THE DRC
Gem Diamonds (LSE: GEMD) today announces that it has completed the sale of its shares in two of its three companies in the Democratic Republic of Congo ("DRC") to Kasai Resource Mining Limited ("KRM") for a total purchase price of US$ 3.8 million. The sale of Gem Diamonds' third company in the DRC, at a purchase price of US$ 1.2 million, is expected to be completed in January 2010.
Under the terms and conditions of the sale agreements entered into with KRM, and in line with its strategy of pursuing kimberlite opportunities, Gem Diamonds maintains a right, at no cost, to an initial 65% interest in any economic kimberlite that may be discovered on the concessions currently owned by these DRC companies. In addition, Gem Diamonds will be entitled to a 3% royalty on the revenue from any diamonds extracted from any kimberlite discovery on such concessions.
For further information:
Investor relations
Richard Chetwode
Tel: +44 (0) 7590 064 883
Gem Diamond Technical Services
Sherryn Tedder
Tel: +27 (0)11 560 9600
Pelham PR
James Henderson/ Chelsea Hayes
Tel: +44 (0) 20 7337 1523
About Gem Diamonds
Gem Diamonds Limited (LSE: GEMD) is a diamond mining and marketing company with a specific focus towards higher value diamonds, a segment of the market that its management believes will deliver superior long term returns.
Under current market conditions, Gem Diamonds is pursuing a near term strategy of focusing on cash preservation and generating maximum cash flow from its producing assets, the Letšeng Mine in Lesotho and the Kimberley Diamonds' Ellendale E9 Pipe in Australia. These two operations continue to produce amongst the world's finest white and fancy yellow diamonds respectively.
Related Shares:
Gem Diamonds Di