Sale of Assets in the DRC

RNS Number : 7839D

Gem Diamonds Limited

08 December 2009

 



08 December 2009 

GEM DIAMONDS LIMITED

("Gem Diamonds" or the "Company") 

GEM DIAMONDS SALE OF ASSETS IN THE DRC

Gem Diamonds (LSE: GEMD) today announces that it has completed the sale of its shares in two of its three companies in the Democratic Republic of Congo ("DRC") to Kasai Resource Mining Limited ("KRM") for a total purchase price of US$ 3.8 million. The sale of Gem Diamonds' third company in the DRC, at a purchase price of US$ 1.2 million, is expected to be completed in January 2010.

Under the terms and conditions of the sale agreements entered into with KRM, and in line with its strategy of pursuing kimberlite opportunities, Gem Diamonds maintains a right, at no cost, to an initial 65% interest in any economic kimberlite that may be discovered on the concessions currently owned by these DRC companies. In addition, Gem Diamonds will be entitled to a 3% royalty on the revenue from any diamonds extracted from any kimberlite discovery on such concessions.

For further information: 

Investor relations 

Richard Chetwode

Tel: [phone]

Gem Diamond Technical Services

Sherryn Tedder

Tel: [phone]

Pelham PR

James Henderson/ Chelsea Hayes 

Tel: [phone]

About Gem Diamonds

Gem Diamonds Limited (LSE: GEMD) is a diamond mining and marketing company with a specific focus towards higher value diamonds, a segment of the market that its management believes will deliver superior long term returns.  

Under current market conditions, Gem Diamonds is pursuing a near term strategy of focusing on cash preservation and generating maximum cash flow from its producing assets, the Letšeng Mine in Lesotho and the Kimberley Diamonds' Ellendale E9 Pipe in Australia. These two operations continue to produce amongst the world's finest white and fancy yellow diamonds respectively. 

 

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