Trading Update
16 April 2010 - 7:39PM
UK Regulatory
TIDMKDD
Trading Update
PRESS RELEASE
KOPANE DIAMOND DEVELOPMENTS Plc
(the "Company" or "Kopane")
ANNOUNCEMENT
16 April 2010
TRADING UPDATE
* Talks continue regarding a possible offer for the company
* Proposed recommencement of production at Liqhobong
* Funding and construction contracts for power line supply being finalised
* DFS plant and tailings dam design to be completed.
Kopane Diamond Developments Plc wishes to announce the following information to its shareholders.
Talks regarding a possible offer for the company continue
The Board announced on 10th February 2010 that it was in discussions which may or may not lead to an offer
being made for the entire issued share capital of Kopane. Talks are progressing and a further announcement
will be made in due course.
Mining and development of Liqhobong
The Company is putting into place measures necessary for the recommencement of production at Liqhobong as
soon as practicable in 2010. Production will focus initially on the K2 and K5 facies of the main pipe from
which high value stones have previously been recovered, thereby providing further material economic
enhancement to project value.
Power Line Project
The project to connect grid electricity to Liqhobong has continued, in order to allow construction of the
power line to commence in 2010 and connection of electricity to site to be achieved by the end of 2011.
Terms for a bank loan to fund the work are now being negotiated between the parties and tender documents
for construction contracts are being finalised. Connection to the grid power supply is necessary to enable
Liqhobong to be fully developed and will greatly enhance project value.
Definitive Feasibility Study
In November 2009 and January 2010 a total of GBP9.3 million before expenses was raised by the Company to
enable the resumption in production, further work on the Definitive Feasibility Study ("DFS") and the
assessment of strategic investment opportunities. Of this amount GBP3.15 million and GBP3 million are
receivable monthly over periods of 24 and 18 months respectively under equity swap arrangements depending
on the Company's share price.
The considerably larger Main Pipe kimberlite resource of 90.7m tonnes has necessitated a reconsideration of
plant design and tailings disposal and the remaining work on the DFS, which is being undertaken, is
concerned mainly with these issues and is being financed through existing resources.
Frank Scolaro Chairman of the Company commented today: "I believe the way forward will be significantly
value enhancing. Kopane remains unencumbered by debt and well funded. Talks in respect of a possible offer
for the Company are progressing well, and in addition, in view of the recent recovery of diamond prices,
production at Liqhobong would also lead to significant upside for Kopane's shareholders."
About Kopane
Kopane is a diamond producer, developer and explorer with core projects at Liqhobong in Lesotho, Southern
Africa. The Liqhobong operations are operated by Liqhobong Mining Development Company ("LMDC") which is 75%
owned by Kopane and 25% by the Government of Lesotho ("GoL"). As a result of the successful development of
the operations at Liqhobong and the delineation of a substantial geological resource in the Main Pipe, LMDC
was, in February 2007, granted a 20 year mining licence for the Main Pipe by the GoL.
LMDC produced over 350,000 carats of diamonds since operations commenced at the end of 2005 until
suspension of production in December 2008. The principal development project is the Main Pipe which has the
potential to produce at a rate of one million carats per annum.
Kopane also has a joint venture to explore for diamonds in Finland, managed and financed by Mantle Diamonds
Limited.
The Company is listed on AIM (and is also traded through the Plus Market), ticker symbol: KDD.
For further information contact:
Kopane Diamond Developments Plc Threadneedle Communications
Frank Scolaro, Chairman Laurence Read/Beth Harris
James Cable, Finance Director +44 (0) 207 653 9850
+44 (0) 20 7963 9590
FinnCap
Matthew Robinson/Ed Frisby
+44 (0) 20 7600 1658
e-mail: ir@kopanediamonds.com
website: www.kopanediamonds.com
Kopane Diamond Developments PLC
Kopane (LSE:KDD)
Historical Stock Chart
From May 2024 to Jun 2024
Kopane (LSE:KDD)
Historical Stock Chart
From Jun 2023 to Jun 2024
Real-Time news about Kopane (London Stock Exchange): 0 recent articles
More Kopane News Articles