Sale of Dimbi Project

 

TIDMPDF 
 
RNS Number : 2706I 
Pangea DiamondFields PLC 
09 March 2010 
 

 
 
 
 
 
                            Pangea DiamondFields plc 
                          ('Pangea' or the 'Company') 
 
                              Sale of Dimbi Project 
 
Pangea DiamondFields plc (AIM:PDF), the diamond producer and exploration company 
announces that it has entered into an agreement with a senior employee of the 
Company for the sale of the entire issued share capital of Dimbi Diamonds SAU, a 
wholly owned subsidiary of the Company and the holding company of the Dimbi 
project in the Central African Republic ('CAR'). 
 
The consideration for the disposal is a 5% royalty payment based on future gross 
sales revenue from the sale of diamonds from Dimbi plus a payment of US$500,000 
to be paid either from the proceeds of the first sales of diamonds in the event 
that the new owner chooses to operate the project or from the proceeds of asset 
sales should the purchaser choose not to operate the project. 
 
While Pangea considers that the fundamentals of the Dimbi project are 
attractive, the logistical support required to maintain a commercial scale 
operation and the long lead times associated with the procurement of equipment 
and spares are considered to be unviable at the Company's planned scale of 
operations. Significant costs are associated with continuing to hold the project 
while other projects within the Company's portfolio are developed in priority. 
Costs would also have arisen were the project to be closed. 
 
The disposal of Dimbi to a local senior employee with experience of the project 
and of operating in the CAR enables the Company to retain exposure to the 
project should a future mining operation be established. 
 
In the Company's half year results for the six months ended 30 June 2009, an 
impairment charge was recognised against the value of the Dimbi project, which 
was written down  to a carrying value of zero in the Company's accounts. 
 
The Company is separately closing its Etoile project, therefore marking the 
Company's exit from the CAR. 
 
Dimbi Diamonds SAU is wholly owned by Efidium Limited ('Efidium') and therefore 
the consideration for the disposal will be acquired by International Gold 
Exploration AB ('IGE') following completion of the proposed sale of Efidium to 
IGE as announced on 22 February 2010. 
 
Further information: 
 
+----------------------+------------------------+-----------------------+ 
| Pangea DiamondFields | Ambrian Partners       | Walbrook PR Ltd       | 
| plc                  | Limited                |                       | 
|                      |                        |                       | 
+----------------------+------------------------+-----------------------+ 
| Boris Kamstra        | Richard Brown /        | Louise Goodeve / Leah | 
|                      | Richard Greenfield     | Kramer                | 
+----------------------+------------------------+-----------------------+ 
| T: [phone]   | T: [phone]     | T: [phone]    | 
|                      | 4700                   | 8780                  | 
|                      |                        |                       | 
+----------------------+------------------------+-----------------------+ 
 
Notes to Editors: 
 
Pangea DiamondFields plc (AIM: PDF) is an emerging diamond producer and 
exploration company with a portfolio of five projects each with multiple 
resource targets, located in Angola, South Africa and the Democratic Republic of 
the Congo. The Company aims to minimise risk by diversifying its projects 
geographically. 
 
PDF listed on AIM in October 2006 and is led by a strong management team, with a 
track record for creating shareholder value in mineral exploration. 
 
On 22 February Pangea announced that it had entered into an agreement with IGE 
whereby Pangea will merge its diamond interests with IGE by the disposal of the 
entire issued share capital of Efidium Limited, which is the holding company for 
all operational activities of Pangea. 
 
 For more information on PDF, please visit: 
http://www.pangeadiamondfields.com/ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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