Gemfields Grou. Regulatory News (GEM)

21 Dec 2005 11:36

21 December 2005 GEMFIELDS RESOURCES PLC ACQUISITION OF KAMAKANGA MINE INCLUDING PAMODZI LICENCE Gemfields Resources Ltd ("Gemfields" or "the Company", Ticker "GEM") is pleasedto announce the completion of the acquisition of the Kamakanga Mine and thePamodzi Licence area in the Ndola Rural Emerald Restricted Area ("NRERA") inZambia.The Kamakanga Mine was one of the earliest to come into production in the NRERAin the 1970's and has been a significant producer of emeralds.On 4 July 2005 the Company signed an agreement with Kuber Mineral and MetalMining Company Limited and Haree Enterprises Limited for the acquisition ofGemstone Licence Nos GL002 (Kamakanga Mine) and GL078 (Pamodzi) on plot No 6/1along with certain plant and equipment, infrastructure, offices and property.The total consideration was US$2,451,000, of which US$1,351,000 was deferred toa date on or before the expiry of 180 days from the date the agreement wassigned. It is this deferred payment that Gemfields has now made aftercompletion of the transfer of ownership of the licences, the property and theassets.The Kamakanga property (GL002), measuring 235 hectares, is located 5 to 6 kmwest-southwest along the regional strike from the Mbuva-Chibolele Mine. ThePamodzi property (GL078), measuring 85 hectares, is contiguous to the northeastin the direction of the local dip of the controlling talcose mafic schists ofKamakanga and Jai Ambay pits, known for the best quality emeralds produced inthe emerald belt of the Kafubu Emerald Area.In addition to the significantly mineralised acreage that this brings to thecompany, the infrastructure and the fleet of mining machinery are an immediateadvantage to the operations of Gemfields in the Kafubu Emerald Area. Theseinclude a fleet of excavators and bulldozers, a large well-equipped earthmovingand plant equipment workshop, a spacious residential area strategically locatedbetween the Mbuva-Chibolele and Kamakanga properties, as well as spaciousoffice and administration facilities in Kitwe which now function as the mainoffices of Gemfields in Zambia.Commenting today, Rajiv Gupta, Executive Vice-Chairman, said "The completion ofthis acquisition, following on so quickly from the confirmation of start ofmining, confirms that Gemfields is moving rapidly to meet its strategic goalsas set out for its recent AIM Admission".For more information:Richard James, Gemfields Resources Plc +44 (0)20 7016 9416/+44 (0) 7958 714 056richard.james@gemhouseonline.comLeesa Peters/Laurence Read, Conduit PR +44(0)20 7429 6666/+44 (0) 7979 955 923laurence@conduitpr.comENDGEMFIELDS RESOURCES PLC