Sale of Tanzanite Mining Operation
Following a comprehensive review of the strategic options available for its mining operations in Tanzania, Richland has entered into a 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 Company has agreed the USD5.1m conditional sale of its Tanzanian mining, exploration and cutting operations USD10.8m of existing liabilities to be transferred post sale Additional rights to payments of up to USD$1.2m, representing 30% of STAMICO/TML JV Deferred Consideration until 2019 Focus on re-development of Capricorn Sapphire mine, Australia for first production Q1 2015. The Company has agreed the USD5.1m conditional sale of its Tanzanian mining, exploration and cutting operations
- USD10.8m of existing liabilities to be transferred post sale
- Additional rights to payments of up to USD$1.2m, representing 30% of STAMICO/TML JV Deferred Consideration until 2019
- Focus on re-development of Capricorn Sapphire mine, Australia for first production Q1 2015
Richland is also in the process of closing all of its luxury good operations in Tanzania, namely the Tanzanite Experience retail chain.
Following completion of the Sale, and after expenses relating to the Sale, the Group would on a pro forma basis have had a cash balance as at 30th June 2014 of USD6.9 million with all historic liabilities from TML removed. The Group intends to use the Sale proceeds to fund the ongoing work programme and further development of its Capricorn Sapphire Project in Queensland.
TanzaniteOne Online
TanzaniteOne Online is TanzaniteOne’s online retail gemstone and jewellery boutique. Opened in August 2013, the store offers consumers worldwide the ability to buy direct from the mine itself. The store offers tanzanite set fine gold jewellery and also loose gemstones. After the sale of the mine is concluded, TanzaniteOne Online will continue to trade for a limited period in to mid 2015 before closing.
The online store occupies a genuinely unique position as the only online tanzanite store who mine and supply the tanzanite sold.
Additionally all TanzaniteOne Online's pieces come with the Tanzanite Foundation's Mark of Rarity and a TanzaniteOne Certificate of Authenticity and Origin, guaranteeing the stone's ethical status, authenticity and conflict-free origin. The online boutique is also a member of the World Responsible Jewellery Council.
