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LAF
LOLAF
Lonrho Africa Plc - Lonrho Africa Takes Stake In South African Diamond Producer
Lonrho Africa Plc
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF & ISIN number: GB0002568813)
("Lonrho Africa" or "the Company")
LONRHO AFRICA TAKES STAKE IN SOUTH AFRICAN DIAMOND PRODUCER
Lonrho Africa is pleased to announce that it has agreed to acquire a substantial
direct interest in South African diamond producer Nare Diamonds Limited
("Nare"). Lonrho Africa"s Chief Executive Mr David Lenigas will become non-
Executive Chairman of Nare.
Lonrho Africa has subscribed for 14.44 million ordinary shares at 10.4 pence per
share as part of a pre-IPO funding. This 1.5 million investment represents a
17% holding of Nare"s issued share capital. Nare is seeking an admission to AIM
in the first half of 2006 and is advised by London"s Fox-Davies Capital Limited
as broker and Grant Thornton Corporate Finance as Nominated Adviser.
Lonrho Africa views the timing of this investment as fortuitous. David Lenigas,
Lonrho Africa"s Chairman and CEO, commented:
"This investment is the second under Lonrho Africa"s new management following
the recent 10% investment in South African uranium player Brinkley Mining Ltd
and is in-line with our strategy to re-establish Lonrho Africa on the African
continent. This investment will provide Lonrho Africa with exposure to the
lucrative diamond industry and offers the potential of excellent return to our
shareholders. The demand for natural rough gems continues to be high and prices
are still rising. This transaction demonstrates our strategy of re-establishing
a major presence in Africa through investments in the natural resources,
infrastructure and leisure sectors."
NARE DIAMONDS LIMITED
Nare is headed up by Mr Charles Mostert (ex Director of Crown Diamonds which was
taken over by London listed Petra Diamonds PLC) with diamond interests
consisting of a combination of production and exploration projects in South
Africa. These projects are the Schmidtsdrift Diamond Mine (80% interest), the
Klipspringer Joint Venture (20% interest), the Groen River Project (100%
interest) and the Kamfersdam Kimberlite Pipe and tailings operation (100%
interest).
Diamond production at the Schmidtsdrift Mine commenced in March 2006. The mine
is located some 80km north west of Kimberley in the Northern Cape Province and
consists of 31,227 hectares of highly potential diamondiferous gravel deposits.
Previous mining activities at Schmidtsdrift yielded 33,679 carats with an
average stone size of 1.14 carats.
Infrastructure on the Schmidtsdrift Mine is well developed and the asset
inventory includes state-of-the-art diamond recovery plant and equipment. Mining
operations are sub-contracted to experienced operators.
Nare"s second diamond operation, the Kamfersdam tailings operation, is expected
to be commissioned by 1st May 2006.
For further information, please contact:
Lonrho Africa Plc
David Lenigas +44 (0)7881 825 378
Emma Priestley +44 (0)7867 785 177
Strand Partners Limited +44 (0)20 7409 3494
Simon Raggett +44 (0)7769 883 666
Cardew Group +44 (0)20 7930 0777
Nadja Vetter +44 (0)7941 340 436
Eden Mendel +44 (0)7866 525 836
Emma Consett +44 (0)7971 468 308
11 April 2006
South African sponsor to Lonrho Africa Plc
Java Capital (Pty) Limited
Date: 11/04/2006 12:49:26 PM Produced by the JSE SENS Department
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