GedW18 Feb 2009 16:44
During the Quarter, Kimcor Diamonds Plc ("KimCor"), in which Dwyka has a shareholding of 48%, announced that it had signed a Sale of Shares Agreement with Belmont Mining Limited ("Belmont") pursuant to which KimCor would effectively dispose of its diamond and industrial businesses via the sale to Belmont of all of the shares in the KimCor subsidiaries acting as holding companies for those businesses, in return for Belmont assuming liabilities in relation to those businesses and paying £500,000 in cash to KimCor. The signing of this agreement came in response to a dramatic downturn in the market for rough and unpolished diamonds as a consequence of the global financial crisis and resultant concerns about the future profitability for KimCor of its Southern African-based diamond assets. The agreement, which was subject to the approval of KimCor shareholders in general meeting, became unconditional when such approval was obtained at the KimCor EGM held on 8 January 2009. At that EGM, KimCor shareholders also voted to change the name of the company to Carlton Resources Plc.
£500K, as I said befroe they have not got much, Be careful wiith KIM...