ASA Asa Resource

TIDMASA

RNS Number : 8189L

ASA Resource Group PLC

24 July 2017

Asa Resource Group plc

("Asa Resource", "the Group" or "the Company")

Klipspringer Diamond Mine- disposal

Asa Resource is pleased to announce that its subsidiary, SouthernEra Diamonds Inc ("SouthernEra") in which Asa Resource holds a 73% stake, has agreed to dispose of its Klipspringer Diamond Mine interests located in South Africa for ZAR 23 million, (approximately GBP1.37 million or US$1.78 million) payable 50% in cash on fulfillment of initial conditions precedent and 50% on fulfilment of final suspensive conditions including the regulatory approvals by the South African government. The purchaser is SLA Capital on behalf of Greenhurst Mining and Exploration Pty Ltd ("Greenhurst"). Asa Resource will additionally earn 3% royalty on gross monthly diamond sales.

Toindepi Muganyi, Chief Executive Officer, commenting on the transaction: "The board commissioned an independent review by a diamond mining & processing specialist and their conclusions were clear cut. Including the cost of care and maintenance, Klipspringer has been loss-making to the extent of at least ZAR1m per month (approximately GBP60,000 or US$80,000). The slimes retreatment project which used to generate reasonable revenues to cover our costs was terminated in April 2017, due to non-performance. Grades were not being achieved and the project was having a negative impact on the Group's cashflow. The prospects of restarting the mine were unlikely due to historical complications of the BEE ownership structure, a requirement under the SA Mining Charter."

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Contact

For more information http://www.asaresourcegroup.com/ or contact us below.

Asa Resource Group plc

One Fleet Place, London EC4M 7WS

Ian B Dearing, Executive Director, Group General Counsel and Company Secretary

Niall Henry, non-executive Director (Investor Relations)

communications@asaresourcegroup.com

Nominated Adviser and Broker

SP Angel Corporate Finance LLP

Prince Frederick House, 35-39 Maddox Street, London W1S 2PP

John Mackay, Jeff Keating, Caroline Rowe

Tel: +44 (0) 20 3470 0470

This information is provided by RNS

The company news service from the London Stock Exchange

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