Nyota Minerals Regulatory News (NYO)

31 May 2007 09:18

Dwyka Resources Limited31 May 2007 Kimberley Tailings Re-treatment Operation Restructured Dwyka Resources Limited ("Dwyka" or "the Company") operates a diamond tailingsre-treatment plant in Kimberley, South Africa, through its 70% owned SouthAfrican subsidiary Superkolong (Pty) Ltd ("Superkolong"). The remaining 30% ofSuperkolong is owned by Kolong Investment Holdings (Pty) Ltd, Dwyka's BlackEconomic Empowerment ("BEE") partner. The tailings treated through Superkolong's plant are supplied by De Beers fromnearby tailings dumps which have resulted from historic operations of De Beersin the Kimberley area. Superkolong was awarded a contract to construct a plantto reprocess the tailings material, initially at a rate of 50,000 tonnes permonth. Under the terms of the contract, Superkolong has been processing on thefollowing basis: - De Beers were responsible for delivery of feed to the plant, at their expense;- De Beers paid a fixed toll treating charge for material processed; and- the proceeds of diamond sales were to be shared between Superkolong and De Beers under a two-tiered profit sharing system based on the grades of diamonds sold. De Beers have been paying Superkolong in accordance with the toll treatingarrangements, however the recovered grades have been lower than expected and DeBeers have notified Superkolong of their intention to sell the dumps whichsupply feed to the Superkolong plant. Superkolong, together with other similaroperators on those dumps, have been invited to submit a tender to purchase thedumps. A joint bid to purchase the dumps has been submitted to De Beers. Theoutcome of this bid is expected in the near term. As an interim arrangement, De Beers have implemented certain amendments to theexisting contract which will result in the following changes: - removal of the initial contract supply limit of 50,000 tonnes per month - De Beers will now supply to Superkolong as many tonnes of tailings feed material as the plant can process in a particular month; and - Superkolong will now bear all operating costs (including ore reclamation and delivery), but will be entitled to 100% of revenue from the sales of diamonds produced by the Superkolong plant. The revised contractual terms take immediate effect and will operate for theperiod during which the purchase of the dumps is negotiated. For further information please contact: In AustraliaMelissa Sturgess/ Adrian GriffinDwyka Resources Limited(+618) 9324 2955 In United KingdomRichard BrownAmbrian Partners Limited(+44) 20 7776 6417 Or visit: http: //www.dwyresources.com This information is provided by RNS The company news service from the London Stock Exchange