| Thu 26 Oct 2006, 14:27 | | Lonrho Africa - Nare Diamonds Limited (NARE) Updat |
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LAF
LOLAF
Lonrho Africa - Nare Diamonds Limited ("NARE") Update And Senior
Operations Appointments
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 LIMITED ("NARE") UPDATE AND SENIOR OPERATIONS APPOINTMENTS
Lonrho notes today"s announcement made by Nare, in which Lonrho has a 15%
interest.
"We are pleased with Nare"s progress and we continue to believe in the
significant potential of our investment," said Lonrho"s Joint Executive
Chairman and Chief Executive, David Lenigas.
THE FULL TEXT OF NARE"S ANNOUNCEMENT IS AS FOLLOWS:
Nare Diamonds Limited
("Nare" or the "Company")
Company update and senior operations appointments
The Board of Nare is pleased to advise that it has made four senior
operations appointments in advance of its intended listing on the
Australian Stock Exchange ("ASX") this year.
The Company and its advisors are finalising the Prospectus and associated
capital raising and Indian Ocean Capital has been engaged as Corporate
Advisor and Lead Manager to support the offer and ASX listing. Lonrho
Africa, currently a 15% shareholder in Nare, intends to increase its
shareholding in Nare to 19.99% of the expanded issued share capital.
Further details on the offer will be available when the Prospectus is
lodged with the Australian Securities and Investments Commission and ASX in
November.
Following the successful completion of the ASX listing, Nare intends to
seek admission to the Alternative Investment Market of the London Stock
Exchange and the Johannesburg Stock Exchange.
Nare was established in 2004 and through its South African subsidiary, New
Diamond Corporation ("NDC"), has interests in a combination of diamond
production and exploration operations in South Africa. These include 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).
Since commencing trial mining at Schmidtsdrift in April 2006 Nare has sold
a total of 3,849 carats of diamonds at an average price of US$1,161 per
carat raising a total of US$4,467,259. This includes a rare 235 carat
gemstone which was sold in August for US$10,205.91 per carat, totalling
US$2,398,695. Nare also recently discovered a 66 carat gemstone which has
yet to be valued.
The Company has also made a number of senior appointments as it seeks to
develop its operations and expand production at Schmidtsdrift:
- Otto Graven has been appointed as Operations Manager;
- Manfred Marx as a Consulting Geologist;
- Kevin Dabinett as a Mining Consultant; and
- William Johannes as Community Liaison Officer.
All have considerable experience of working in the diamond mining industry
at companies such as De Beers, Normandy Mining and Petra Diamonds and their
appointments will significantly strengthen Nare"s executive team.
Commenting on the company"s intention to list, Jack Griffin, Chairman of
Nare Diamonds said:
"The Schmidtsdrift mine is a world class alluvial diamond deposit and the
significant value the company has released in the months since trial mining
started underlines Nare"s potential.
"The fundraising and admission to the ASX will enable us to finalise the
restructuring of NDC and fund the ongoing exploration at Schmidtsdrift and
Groen River while also providing the Company with a solid platform for
future growth."
Commenting on the appointments, Charles Mostert, Chief Executive Office of
Nare Diamonds said:
"On behalf of the Board I am pleased to welcome the new members of our
senior management team to the Company. I"m sure that the significant
knowledge and experience they bring to Nare will enable us to continue to
grow and develop our business to the benefit of shareholders.
"Our ability to continue to attract such highly qualified and experienced
people is testament to the quality of our assets and the Company"s good
prospects."
DISCLAIMER
This announcement does not contain or constitute an offer or invitation to
purchase or subscribe for any securities of Nare in any jurisdiction and
should not be relied on in connection with any decision to purchase or
subscribe for any such securities.
Offers of securities in Nare are to be accompanied by a copy of the
Prospectus. Anybody wishing to acquire securities in Nare will need to
complete an application form that will be incorporated in, or will
accompany, the Prospectus.
This announcement has been prepared for publication in Australia and the
United Kingdom and may not be released in the United States. This press
release does not constitute an offer of securities for sale in the United
States or any other jurisdiction. Any securities described in this press
release may not be offered or sold in the United States absent registration
under the U.S Securities Act of 1933 or an exemption from registration.
26 October 2006
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 26/10/2006 02:27:52 PM Produced by the JSE SENS Department
