Namakwa Diamonds Limited Result of Tenders (3202M)

TIDMNAD

RNS Number : 3202M

Namakwa Diamonds Limited

14 September 2012

14 September 2012

Namakwa Diamonds Limited (AIM: NAD)

("Namakwa Diamonds" or the "Company")

Result of Tenders

Namakwa Diamonds is pleased to announce that it has successfully closed its recent sale of rough diamonds from the Kao Mine in Lesotho, operated by 62.5% owned subsidiary, Storm Mountain Diamonds. The tender in Antwerp through Fusion Alternatives, the dedicated tender partner of I Hennig & Co., took place between 31 August and 6 September 2012.

All 75 lots offered, totalling 25,210 carats, were sold at an average selling price of US $269 per carat, with an average diamond size of 0.36carats. The sale realised revenues of approximately US$6.8 million, with achieved prices again exceeding expectations, reflecting the strong demand for Kao product.

Namakwa Diamonds has also closed a tender held at CS Diamonds in Kimberley which ran between 10 and 13 September 2012, for production from its South African subsidiaries. The North West production, totalling 2,099 carats, was sold at an average price of US$657 per carat, with an average stone size of 0.55 carats. The sale realised revenues of approximately US$ 1.4 million.

The total sales revenues realised by the Company from the two tenders amount to US$8.2 million.

Commenting, Theo Botoulas, Chief Executive Officer of Namakwa Diamonds, said: "We are very pleased with the excellent results of the Antwerp tender. Even in the face of uncertain market conditions, the Kao tenders continue to achieve 100 per cent sell-through. Since January 2012, we have now sold a total of 112,221 carats from Kao Mine production in the nine tenders held to date, generating US$31.4 million in revenues for the Company. In addition, the South African production continues to perform to expectation and revenues derived from it are delivering a strong platform for growth and expansion in the North West Province."

For further information please visit www.namakwadiamonds.com or contact:

 
 Namakwa Diamonds                            Shore Capital 
                               +27 11 334                   [phone] 
 Theo Botoulas                  8886         Pascal Keane    4090 
 
 Tavistock Communications 
                               [phone] 
 Simon Hudson/Simon Compton     3150 
 

About Namakwa Diamonds Limited

Namakwa is a diamond resource group, which seeks to extract maximum value from the marketing and sale of Group mined and contracted production.

The Group's mining activities are focused on the Kao Mine in Lesotho. Operated by Storm Mountain Diamonds and its leading hard-rock mining team, with a proven track record in the construction and development of Lesotho's leading kimberlite pipes, the Kao Mine presents a 189Mt kimberlite resource of c.12.8m carats (c.4m indicated and c.8.8m inferred), with an additional 1.7m carats at a deposit level of confidence, in which Namakwa holds a 62.5% interest. The other shareholders are the Government of Lesotho 25% and Kimberlite Investments Lesotho Limited 12.5%.

The Group also maintains alluvial mining operations in the North West Province of South Africa and resource-development properties in the Northern Cape Province of South Africa and the offshore marine environment of Namibia.

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This information is provided by RNS

The company news service from the London Stock Exchange

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