| Tue 28 Aug 2007, 16:59 | | LAF - Lonrho Plc - Nare Diamonds to change name an |
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LAF
LOLAF
LAF - Lonrho Plc - Nare Diamonds to change name and agrees Lulo Diamond joint
venture with Endiama
Lonrho Plc
(Formerly Lonrho Africa Plc)
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho Africa" or "the Company")
NARE DIAMONDS TO CHANGE NAME TO LONRHO MINING AND AGREES LULO DIAMOND JOINT
VENTURE WITH ENDIAMA, THE STATE OWNED DIAMOND MINING COMPANY OF ANGOLA
Lonrho (AIM: LONR), the conglomerate with a diverse portfolio of African
investments, is pleased to announce that Nare Diamonds Limited ("Nare"), the
Australian listed African diamond mining company in which it holds a 21.94%
stake, intends to:
- change its name to Lonrho Mining Limited ("Lonrho Mining");
- seek a dual listing on AIM; and
- develop a highly prospective 3,000 kilometre square diamond concession in
Angola with Endiama.
LONRHO MINING
The Lonrho Mining management team will continue to be led by Charles Mostert,
the CEO of Nare Diamonds. He is supported by David Lenigas, the Chairman and
Chief Executive Officer of Lonrho who recently become Chairman of Nare, and
Geoffrey White, Lonrho`s COO, who recently became a non Executive Director of
Nare.
The proposed change of name to Lonrho Mining reflects the recent increase in
ties with Lonrho and should enable Nare to benefit further from Lonrho`s
experience and presence in Africa. Lonrho Mining will look to selectively
acquire exploration and producing mining assets across the African continent.
The proposed change of name of Nare to Lonrho Mining is subject to Nare
shareholders` approval.
LULO DIAMOND CONCESSION - ANGOLA
Nare has also announced that it has signed a joint venture agreement with
Endiama, the national diamond company of Angola and exclusive concessionary for
Angolan diamond mining rights, to develop a highly prospective 3,000 kilometre
square diamond concession in Angola (the Lulo Diamond Concession). On all the
kimberlite deposits Nare`s participating interest will initially be 39% of the
joint venture which will decrease to 30% after repayment of its investment in
the Project. On all alluvial deposits Nare`s participating interest will be 40%
in the joint venture.
The Lulo Diamond Concession is located in the Cuango River catchment area within
the Lunda Norte Province of northeastern Angola. This concession has been one
of the prime targets for Nare and contains an identified 29 kimberlite pipes and
extensive alluvial resources. It is located close to existing proven kimberlite
pipes and alluvial resources and is widely seen as a highly prospective
concession.
The Catoca Mine, which is the third largest kimberlite diamond mine in the world
and which produces 60% of Angola`s diamond production, is located 150km east of
the Lulo Diamond Concession. The joint venture between Petra Diamonds and BHP
Billiton on the Alto Cuilo is adjacent to the Lulo Diamond Concession where 70
kimberlite pipes have been found, the largest of which is currently being
evaluated.
Charles Mostert, Chief Executive Officer of Nare, commented:
"This is an excellent strategic development for Nare. The Lonrho name is
recognised throughout Africa, and its reputation is excellent. The closer ties
with Lonrho are already providing Nare with unique access to resources and deal
flow throughout Africa whilst the dual listing on AIM and the ASX should help
Nare to continue to grow rapidly and to develop into a significant African
resource company."
David Lenigas, Chairman and Chief Executive Officer of Lonrho Plc and Chairman
of Nare, commented:
"Lonrho has been a shareholder of Nare for some time and recognises that the
management team has the proven ability to deliver. They have made significant
progress at the Schmidtsdrift operations in South Africa, increasing reserves to
some 47 million tonnes of diamond bearing gravel as well as increasing
production."
"The closer ties, including changing its name to Lonrho Mining, will enable Nare
to utilise Lonrho`s heritage and contacts to provide a constant flow of exciting
resource related projects. Lulo Diamond Concession in Angola is seen as highly
prospective and is situated in one of the most sought after locations in Angola.
We see this as the first of several large projects that a new Lonrho Mining can
develop in Africa, and illustrates the type of deals the Lonrho name can gain
access to.
I am sure that the closer relationship and development of Lonrho Mining will
prove rewarding for shareholders of Lonrho Plc."
ENQUIRIES
Lonrho Plc +44 (0) 20 7016 5105
David Lenigas, Chief Executive +44 (0)7881 825 378
Emma Priestley, Executive Director +44 (0)7867 785 177
Nare Diamonds Limited
Charles Mostert +61 407196129
+27 722869288
Pelham PR
Charles Vivian +44 (0) 20 7743 6672
+44 (0) 7977 297903
Alisdair Haythornthwaite +44 (0) 20 7743 6676
+44 (0) 7714 721379
Collins Stewart Europe
Hugh Field +44 (0) 20 7523 8350
Jonny Sloan
28th August 2007
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
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