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MINERAL COMMODITIES LTD — Capital/Financing Update 2008
Jun 3, 2008
65371_rns_2008-06-03_a6e83d16-0397-4dae-a129-f73f7effa3d5.pdf
Capital/Financing Update
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Mineral Commodities Ltd
ABN 39 008 478 653
Unit 15, Level 1, 51-53 Kewdale Road Welshpool, Perth, Western Australia 6106 PO Box 235, Welshpool DC, Perth Western Australia 6986 Telephone: (08) 9353 4890 Facsimile: (08) 9353 4894 Email: [email protected] Web: www.mncom.com.au
4 June 2008
The Manager Australian Securities Exchange Limited 20 Bridge Street, Sydney NSW 2000
DIVESTMENT OF SIERRA LEONE DIAMOND ASSETS
The Board of Mineral Commodities Limited (MRC) advises that the Company has entered into a conditional Heads of Agreement with ROK Diamonds Ltd, a wholly owned subsidiary of ROK Entertainment Group, to sell the No 11 diamondiferous gravel dump at Koidu in Sierra Leone.
The divestment will proceed via the sale of the Company’s wholly owned subsidiary MRC Africa Pty Ltd, the entity which holds the Company’s interests in Sierra Leone.
The agreement also includes the sale of items of plant and equipment but will exclude the Diamond Pan Plant at this stage.
Consideration for the sale is US$2,000,000 apportioned as follows:
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(i) US$1,500,000 payable at settlement;
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(ii) the balance of US$500,000 may be converted to ordinary seed shares in ROK Diamonds Limited at MRC’s election within 12 months or the float of ROK Diamonds Limited whichever occurs first.
Completion of the transaction is expected in the September quarter and is subject to certain conditions precedent including 30 days due diligence the parties entering into a formal share and asset purchase agreement.
Yours faithfully
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Peter Torre Company Secretary MINERAL COMMODITIES LIMITED
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