5 Dec 2014 07:00
Richland Resources Ltd
("Richland" or "the Company") (AIM: RLD)
Receipt of Signing Consideration and Escrow Amount
Further to its announcement on 26th November 2014 regarding the conditional sale agreement dated 25 November 2014 ("Sale Agreement") with Sky Associates Group Limited ("Sky Associates") pursuant to which the Company will sell to Sky Associates the Group's tanzanite mining and beneficiation business and tsavorite license interests in Tanzania (the "Sale"), Richland confirms receipt from Sky Associates of:
· USD510,000 (10% of the Initial Consideration, being the "Signing Consideration") to
the Company; and
· USD510,000 (the "Escrow Amount") to the Company's solicitors to be held under the escrow arrangements set out in the Sale Agreement on account of that part of the purchase price payable on satisfaction of the various conditions in the Sale Agreement.
These payments are in accordance with the terms of the Sale Agreement.
As previously announced, the Sale remains conditional inter alia on approval of the Sale by:
(a) the Company's shareholders ("Shareholder Approval")
(b) the Minister of Energy and Minerals of the Republic of Tanzania ("Ministerial Approval"); ;and
(c) the South Africa Reserve Bank (if required) ("SARB Approval").
For further information on the Sale Agreement and the Special General Meeting called for 22nd December 2014 to seek Shareholder Approval, please refer to the Shareholder Circular and Notice of Special General Meeting dated 26 November 2014 which are available on the Company's website. Defined terms used in this announcement are taken from the Circular.
For more information please contact:
Bernard Olivier
Chief Executive Officer
+61 4089 48182
Mike Allardice
Group Company Secretary
+852 91 864 854
Nominated Advisor & Broker (AIM)
RFC Ambrian Limited
Samantha Harrison
+44 (0) 20 3440 6800
Laurence Read
Corporate Development and Communications Officer
+44 (0)20 3289 9923
http://www.richlandresourcesltd.com