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Tawana Resources has sold Kareevlei diamond project in South Africa to BlueRock Diamonds (ISDX:BR) as part of its dis-investment of non-core assets.

Tawana sold the asset for R4m (about AUS$430 000) in two tranches. The company has also disposed of its interests in the Flinders Island Diamond Project in Australia. This is part of its on-going strategy to reduce overheads, divest non-core assets and fast-track the development of the Mofe Creek Iron Ore Project, Liberia, West Africa.

According to Len Kolff, MD, Tawana Resources the on-going divestment of non-core legacy assets will enable Tawana to affect considerable cost and administrative savings. “It will therefore help fast-track its flagship Mofe Creek Iron Ore Project. This represents a positive outcome, providing the company approximately AU$430 000 in working capital in two tranches in the near future.”

The Mofe Creek Project is a new iron ore discovery located 20km from the coastline and within an historic premier iron ore mining district of Liberia. Proximity to the coast and positive initial metallurgical test-work results suggests the potential for a low capital intensity project at low operating costs.

He further added: “The disposal of these assets, allows the company to streamline its portfolio of assets while reducing overheads and providing additional working capital.”

HIGHLIGHTS:
– Sale of Kareevlei Diamond Project (South Africa) to BlueRock Diamonds Plc  (ISDX:BR)
for R4 million (approximately AU$430 000) in two tranches
– Termination of Flinders Island Agreement with Orogenic Exploration Pty Ltd
– Sale of Flinders Island Diamond Project (Australia) to Orogenic Exploration Pty Ltd and Kalyan Resources Pty Ltd
– Execution of Asset Sale Agreement with Kalyan Resources Pty Ltd in relation to
Flinders Island Diamond Project
– Tawana to fast track its flagship Mofe Creek Iron Ore Project in Liberia

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