| Thu 12 Jun 2008, 11:41 | | LAF - Lonrho Plc - Lonrho Mining sells non-core assets to focus on Flagship |
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LAF
LOLAF
LAF - Lonrho Plc - Lonrho Mining sells non-core assets to focus on Flagship
Angolan Diamond Project
Lonrho Plc
(Formerly Lonrho Africa Plc)
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho" or "the Company")
LONRHO MINING SELLS NON-CORE ASSETS TO FOCUS ON FLAGSHIP ANGOLAN DIAMOND PROJECT
12 June 2008
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 Berend 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
Lonrho Plc +44 (0)20 7016 5105
David Lenigas, Executive Chairman +44 (0)7881 825 378
Geoffrey White, Chief Executive +44 (0)7717 307 308
Officer
Emma de Borchgrave, Executive +44 (0)7867 785 177
Director
Pelham PR
Charles Vivian +44 (0) 20 7743
6672
+44 (0) 7977 297903
James MacFarlane +44 (0) 20 7743
6375
+44 (0) 7841 672831
Collins Stewart Europe : NOMAD to
Lonrho
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
South African sponsor to Lonrho Plc
Java Capital (Proprietary) Limited
Date: 12/06/2008 11:41:01 Produced by the JSE SENS Department.
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