Richland Resources Ltd Sales Update and Proposed Board Changes (8069B)

TIDMRLD

RNS Number : 8069B

Richland Resources Ltd

15 January 2018

15 January 2018

Richland Resources Ltd

("Richland" or the "Company")

Sales Update and Proposed Board Changes

Richland (AIM: RLD), the gemstones producer and developer, is pleased to announce a sales update in respect of rough and cut sapphires sold by its wholly owned subsidiary Capricorn Sapphire Pty Limited since its prior market update of 13 November 2017 and certain proposed Board changes. All figures are unaudited.

Capricorn Sapphire Sales Highlights:

-- US$183,399, in total achieved from the sale of 278,270 carats ("cts") of cut and rough sapphires in the period from 4 November to 31 December 2017 (the "November to December Sales Period")

   --     Sapphire sales during the period were classified into three categories as follows: 

- Lower Quality Sapphire / Corundum

- Higher Quality Sapphire

- Cut sapphire

-- Total sales of US$545,025 achieved in Q4 2017 from the sale of, in aggregate, 2,648,540 cts of cut and rough sapphires

-- Significant sapphire stock remains available for sale when market demand improves and the Company's minimum reserve prices are met

During the November to December Sales Period, the rough heated and unheated sapphires, as well as cut sapphires, that were sold included seven parcels but no commercial quality sapphires.

A summary of the sales revenue of US$183,399 achieved during the November to December Sales Period is set out below.

 
 Category                   US$ Value   Carats Sold   US$ / 
                                                         Ct 
 Lower Quality Sapphire 
  / Corundum                    9,056       238,850    0.04 
 Higher Quality Sapphire      156,300        39,095    4.00 
 Cut Sapphire                  18,043           325   55.52 
                           ----------  ------------ 
                              183,399       278,270 
 

A summary of the total sales revenue of US$545,025 achieved during Q4 2017 is as follows:

 
 Category                       US$ Value   Carats Sold   US$ / 
                                                             Ct 
 Lower Quality Sapphire 
  / Corundum                       85,627     2,449,581   0.035 
 Commercial Quality Sapphire      175,312       119,122    1.47 
 Higher Quality Sapphire          266,043        79,513    3.35 
 Cut Sapphire                      18,043           325   55.52 
                               ----------  ------------ 
                                  545,025     2,648,540 
 

Proposed Board Changes

Dr. Bernard Olivier has advised the Company of his intention to resign as Chief Executive Officer to pursue his other interests. He will remain as a director of the Company whilst the Board finalises the appointment of a new Chief Executive Officer. The appointment process for his successor is well advanced and the Company will make a further announcement in due course. During the transition period the Company's Chairman will be leading shareholder communication.

Edward Nealon, Non-Executive Chairman of Richland, today commented:

"Whilst sapphire prices remain affected by buyers sourcing gemstones derived from illegal mining activity in Madagascar, we will continue to sell where our reserve prices are met, maintain a flexible production model and conduct exploration work to identify higher grade areas on our Capricorn Sapphire licence area.

"I would like to thank Bernard for his significant contribution to the Company from his early days as an exploration geologist through to his more recent role as Chief Executive Officer, and I look forward to announcing his successor in the near future."

For further information, please contact:

 
 Edward Nealon       Mike Allardice 
  Chairman            Group Company Secretary 
  [phone]     [phone] 
 Nominated Adviser   Broker 
  Strand Hanson       Shore Capital Stockbrokers Ltd 
  Limited             Jerry Keen (corporate broking) 
  James Harris        Toby Gibbs / Mark Percy (corporate 
  Matthew Chandler    finance) 
  James Dance         [phone] 
  [phone] 
  3494 
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.

Further information is available on the Company's website: www.richlandresourcesltd.com. Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCDMGMMKDDGRZM

(END) Dow Jones Newswires

January 15, 2018 02:00 ET (07:00 GMT)