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Richland Resources Ltd is selling its Tanzanian mining interests for $5.1m but it is retaining its Tanzanite Experience retail chain.
There will also be $10.8m of liabilities transferred through the disposal with potential deferred consideration of up to $1.2m. A profit of $490,000 is expected on disposal after expenses.
Richland is selling to Sky Associates because the mining operations have been unprofitable and there is uncertainty about its future. Pro forma cash will be $6.9m following the disposal.
This will enable Richland to concentrate on redeveloping the Capricorn sapphire mine in Australia so that it can start production in the first quarter of 2015.
At 2.25p a share, down 0.38p, Richland is valued at £4.89m.
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