Obtala to scale up operations
Obtala Resources was expecting the main and the mobile dense-media separation (DMS) plants at its Sierra Leone operations to rapidly build up production from September onwards.
This should result in diamond revenues being generated in the second half of the year, the company stated.
“I am confident that Obtala will make considerable progress during the remainder of 2010 and, in particular, that the scale-up of diamond mining operations in Sierra Leone and in Africa generally, is expected to create further value for shareholders,” executive chairperson Frank Scolaro said.
Obtala Resources had acquired the Konoma alluvial diamond operation, along with other exploration licences, in Sierra Leone, from African Minerals in a £4,3-million all-share deal, in January.
A month later, it resumed mining at two of the four licences that collectively formed Konoma, namely the Bolima and Bakidu licences.
The company has since continued to make improvements to the operations and the processing plant.
It announced in July that it would, in an attempt to reduce costs, start making use of mobile DMS plants, rather than just the existing main two-million-ton a year DMS plant, as this would allow for focused, localised mining, while reducing the haulage distances and operating costs associated with the mine.
Obtala noted on Friday, that in excess of 2 000 ct have, to date, been recovered at the Sierra Leone site.
Further, the company said that it would continue to do exploration and development work on its other mineral licences, in Tanzania, with an emphasis on gold and nickel projects.
Meanwhile, Obtala announced that it was planning to reorganise its business into an international group.
In terms of the proposed reorganisation, the existing parent company would now become a 100%-owned subsidiary of a new Guernsey holding company, Obtala Resources Limited.
The business operation, assets and liabilities of the Obtala Resources group under the new Guernsey holding company would remain much the same as it was now.
The company, however, believed that the reorganisation was required in light of the more global nature of its businesses.
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