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DMR
DMR
Diamond Core Resources Limited - Grant of mining and prospecting rights
Diamond Core Resources Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/013468/06)
Share code: DMR & ISIN: ZAE000045688
("Diamond Core" or "the company")
Grant of mining and prospecting rights, terms of the BEE agreement and further
cautionary announcement
Shareholders are referred to the cautionary announcement contained in the annual
financial results of the company published on 28 September 2005 and to the
announcement relating to the merger of Diamond Core and Samadi Resources SA
(Pty) Limited ("Samadi") ("the merger") published on 18 July 2005.
1. Grant of mining and prospecting rights
Diamond Core is pleased to announce that the Department of Minerals and Energy
has authorised the grant of the following rights:
* a mining right and prospecting right to the Silverstreams project which is
held by Sandstraat Explorasie (Pty) Limited ("Sandstraat");
* a prospecting right to the Uitdraai project which is held by Prieska Diamond
Mining (Pty) Limited ("Prieska"); and
* a prospecting right to the De Kalk project which is held by Samadi (Douglas)
Exploration (Pty) Limited ("Samadi Douglas").
2. Terms of BEE agreement
In terms of an agreement between Samadi and a broad based BEE consortium,
Sefalana Mineral Resources (Pty) Limited ("Sefalana"), which is headed by Mr
Lesedi Rakgokong and includes The Natural Resources Empowerment Fund, Sefalana
will hold a 50% equity stake in each of Sandstraat, Prieska and Samadi Douglas
(collectively "the Samadi operating subsidiaries"), the balance being held by
Samadi.
Approximately R200 million is required to fund the Samadi operating subsidiaries
as well as the projects which Diamond Core holds directly. Sefalana has the
first right to provide its pro rata portion of the capital required for the
Samadi operating subsidiaries, and Samadi has agreed to provide the balance of
any potential shortfall by way of a structured loan finance arrangement. Samadi
has also been given the right to match the terms of any funding that Sefalana
secures.
3. Further cautionary announcement
Sefalana has agreed to secure its pro rata share of the capital required, or a
portion thereof, by 31 December 2005. The effects on Diamond Core of the merger
and the agreement with Sefalana described above therefore cannot be finalised
until January 2006. Shareholders are accordingly advised to exercise caution
until a full announcement is made, which is expected to be in mid-January 2006.
In the interim, the company will be publishing the Competent Person"s Report
prepared by Venmyn Rand (Pty) Limited on the mineral assets held by Diamond Core
and the Samadi operating subsidiaries on the Diamond Core website -
www.diamondcore.co.za.
9 November 2005
Hyde Park
Sponsor to Diamond Core
QuestCo (Pty) Limited
Date: 09/11/2005 03:00:07 PM Produced by the JSE SENS Department
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