Pangea DiamondFields selling Central African Republic operation
March 10, 2010
Exploration company Pangea DiamondFields said it is selling its Dimbi Diamonds unit in the Central African Republic (CAR) to a senior employee.
Pangea also said that it will be closing its Etoile project, and thus exiting from the CAR altogether.
According to the agreement, Pangea will receive a 5 percent royalty payment based on future gross sales from the Dimbi mine, and $500,000 either from the proceeds of the first sales or from the proceeds of asset sales should the buyer choose not to operate the project.
“While Pangea considers that the fundamentals of the Dimbi project are 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,” Pangea said in a statement.
The firm explained that there were considerable costs related to holding the asset while it prioritises other projects.
“The disposal of Dimbi to a local senior employee with experience of the project and of operating in the CAR enables the Company to retain exposure to the project should a future mining operation be established,” the company stated.
