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Deferred consideration for Richland’s Tanzanian assets finalised

12th June 2015

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – Aim-listed Richland Resources has signed a settlement agreement with Sky Associates, finalising the sale of Richland’s Tanzanian assets.

The gemstone producer and developer announced on Friday that Sky would not be liable for the final deferred consideration of $510 000 expected on June 8 to conclude the $5.1-million sale of the tanzanite mining, beneficiation and tsavorite licence interests, for which Richland had received $4.59-million in tranches since the end of last year.

“The conclusion of the settlement agreement concludes the sale of our Tanzanian operations and allows the group to focus 100% on the operation of our Capricorn Sapphire project and represents a major achievement for Richland in exiting from its Tanzanian operations which have been lossmaking in recent years,” CEO Bernard Olivier said in an update to shareholders.

The deal was meant to offset adjustments and deductions due under the sale agreement and the existing and potential creditors claims and other liabilities of the now Sky-owned Tanzanite One Mining (TML), TsavoriteOne Mining and Urafiki Gemstones.

Further, both parties agreed that neither party would make any further claims against the other under the sales agreement.

Sky and Richland also agreed to amend the terms that would see Sky pay Richland 15%, as opposed to 30%, of any deferred consideration received by TML under the Stamico joint venture agreement up until December 2019.

“Richland now looks forward to building a gemstone sales platform that can give customers assurance in terms of reliability of supply and origin and the opportunity for Richland is to become a cornerstone supplier of gemstones to a jewellery sector increasingly focused on being able to authenticate source of stones,” Olivier concluded.

Edited by Creamer Media Reporter

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