Lonrho Regulatory News (LONR)

12 Mar 2007 07:04

Lonrho Africa PLC12 March 2007 12 March LONRHO AFRICA PLC ("Lonrho") NARE DIAMONDS NEGOTIATES INCREASED REVENUES THROUGH PURCHASE OF MINING EQUIPMENT Lonrho is pleased to announce that Nare Diamonds Ltd ("Nare" or "the Company")has reached an agreement with Reho Mining (Pty) Ltd ("Reho"), the diamond miningcontractor based in South Africa, to take over operator status of theSchmidtsdrift mine and increase the Company's entitlement to 90% of generatedrevenue. Under the terms of the agreement Nare will purchase Reho's mining equipment forZAR 37,735,796 (approximately £2,650,150). Under the previous terms of theagreement Reho was entitled to 75% of the revenue stream generated from the saleof diamonds. Nare has an 80% economic interest in the world class Schmidtsdrift diamond minein South Africa. Lonrho currently holds a 19.05% interest in Nare Diamonds. For further information, please contact: Lonrho Africa Plc +44 (0) 20 7016 5105David Lenigas, Chief Executive +44 (0)7881 825 378Emma Priestley, Executive Director +44 (0)7867 785 177 Pelham PRCharles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297 903Alisdair Haythornthwaite +44 (0) 20 7743 6676 +44 (0) 771 472 1379 Notes to Editors Lonrho is in the process of re-establishing a significant presence on theAfrican continent. Its investment and acquisition strategy, which was adoptedfollowing the appointment of David Lenigas as Chairman and Chief Executive andsubsequent shareholder approval in February 2006, focuses on the infrastructure,transport, natural resources, leisure and agribusiness sectors. Lonrho'sexecutive team has considerable experience across these industries in a widerange of countries. Lonrho announced investments in Luba Freeport, Norse Air,Fly540, Brinkley Mining Plc and Nare Diamonds Ltd in 2006 and an investment inSwissta Water, through Strenner Holdings, in January 2007. Nare Diamonds is an Australian diamond mining company with a portfolio ofexploration and production assets in southern Africa. The Company is headed upby Mr Charles Mostert and has interests in four Diamond mining projects:Schmidtsdrift, Kamfersdam, Groen River and the Klipspringer Joint Venture. The Schmidtsdrift diamond mine is comprised of six contiguous farms located onthe Western bank of the Vaal River covering a total combined area of 320km2. Themine is a producing alluvial diamond mine. Prospecting and trial miningactivities, since 2001, have provided consistent historical production. Rehohave recovered 5,686 carats since April 2006. This was at an average grade of0.63 carats per hundered tonnes, with an average stone size of 1.41 carats. 177stones that exceeded 5 carats in individual size were mined during this periodas well as a rare 235 carat diamond. This information is provided by RNS The company news service from the London Stock Exchange