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Pangea says adieu to CAR as it sells diamond project, shuts down another

11.03.2010

Emerging mid-tier diamond producer and explorer Pangea Diamondfields said it will sell its Dimbi project in the Central African Republic (CAR) to an unnamed “senior” employee.
Pangea chief executive Boris Kamstra said in a statement that the consideration for the disposal was a 5 percent royalty payment based on future gross sales revenue from the sale of diamonds from Dimbi.
In addition, he said, a payment of $500,000 would be paid either from the proceeds of the first sales of diamonds in the event that the new owner chooses to operate the project or from the proceeds of asset sales should the purchaser choose not to operate the project.
“While Pangea considers the fundamentals of the Dimbi project attractive, the logistical support required to maintain a commercial-scale operation and the long lead-times associated with the procurement of equipment and spares are considered to be unviable at the company's planned scale of operations,” Kamstra said.
He noted that the disposal enabled Pangea to retain exposure to the project should a future mining operation be established.
Meanwhile, Pangea said it will close its Etoile project, also in CAR.

Mathew Nyaungwa, Rough&Polished from Namibia

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