LONDON (Alliance News) - Richland Resources Ltd said Friday it has agreed it will not receive a deferred consideration from Sky Associates Group Ltd for the sale of its tanzanite business.
Richland has received USD4.6 million from the sale, and was due a deferred consideration of up to USD510,000, subject to any adjustments and deductions in accordance with a sales agreement.
However, the two companies have agreed the deferred consideration will not be paid, and neither party will make any further claims of any nature against the other in relation to the sale agreement save for any breach to the settlement agreement.
Additionally, the two have agreed to amend the terms of the further deferred consideration so that Sky Associates will pay Richland 15% rather than 30% of any deferred consideration received by the tanzanite business under their joint venture agreement until the end of 2019.
"The conclusion of the settlement agreement concludes the sale of our Tanzanian operations and allows the group to focus 100% on the operation of our Capricorn sapphire project and represents a major achievement for Richland in exiting from its Tanzanian operations which have been loss making in recent years," Richland Chief Executive Officer Bernard Olivier said.
Shares in the company are trading down 0.1% at 5.37 pence Friday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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