Pangea DiamondFields plc – Acquisition of Additional Mining Equipment for Cassanguidi
Pangea DiamondFields plc, the mid-tier diamond producer and exploration company, announces that it has concluded a transaction to acquire certain mining equipment and processing assets from New Millennium Resources Limited for use at its Cassanguidi project in Angola, for a total consideration of $600,000.
The equipment purchased includes earthmoving equipment critical to the ramp up to full production at Cassanguidi, specifically two hydraulic excavators, two front end loaders and two articulated dump trucks as well as various additional items of processing and ancillary plant. The mining equipment will augment Cassanguidi’s existing equipment and enable the increased processing capacity already developed at the project to be fully utilised as planned during Q3 2009. The first items of equipment were dispatched on the 350 km journey to Cassanguidi over this past weekend and it is expected that all of the equipment will be transported to site over the next few weeks.
In consideration for the acquisition of equipment, PDF will pay to NMR an aggregate consideration of $600,000 comprising $250,000 cash and new PDF ordinary shares to the deemed value of $350,000.
The share based element of the consideration is to be satisfied prior to 6 September 2009 by the issue of such number of ordinary shares to NMR as is equal to a value of $350,000 at the prevailing exchange rate and a price of the higher of 2p per share or the 10 day volume weighted average price of PDF’s ordinary shares on AIM prior to the date of issue.
Commenting on this development, Chief Executive Brett Thompson stated, “This acquisition resolves the outstanding concerns the Company had with mining sufficient material to feed the upgraded Cassanguidi processing facilities and will accelerate the ramp up to full production. It also demonstrates the ability of PDF to identify and unlock value opportunities in the regions in which it operates.”