LAF - Lonrho Africa - Nare Diamonds negotiates inc
LAF
LOLAF
LAF - Lonrho Africa - Nare Diamonds negotiates increased revenues through
purchase of mining equipment
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 NEGOTIATES INCREASED REVENUES THROUGH PURCHASE OF MINING EQUIPMENT
Lonrho is pleased to announce that Nare Diamonds Ltd ("Nare" or "the Company")
has reached an agreement with Reho Mining (Pty) Ltd ("Reho"), the diamond mining
contractor based in South Africa, to take over operator status of the
Schmidtsdrift mine and increase the Company`s entitlement to 90% of generated
revenue.
Under the terms of the agreement Nare will purchase Reho`s mining equipment for
ZAR 37,735,796 (approximately GBP2,650,150). Under the previous terms of the
agreement Reho was entitled to 75% of the revenue stream generated from the sale
of diamonds.
Nare has an 80% economic interest in the world class Schmidtsdrift diamond mine
in South Africa. Lonrho currently holds a 19.05% interest in Nare Diamonds.
12 March
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 12/03/2007 12:10:54 Produced by the JSE SENS Department.
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