RAPAPORT... Pangea DiamondFields agreed to sell its Dimbi Diamonds subsidiary to a senior employee at the company. Under the deal, Pangea will receive a 5 percent royalty payment based on future gross sales generated from the Dimbi project, located in Central African Republic (CAR), and $500,000 from either the proceeds of the first sales or from the proceeds of asset sales, should the buyer elect 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 spokespersons explained.
The company added that significant costs are associated with holding the asset while it prioritizes 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.
Pangea also reported that it is closing its Etoile project, marking its departure from the CAR.
LH