London-listed Richland Resources, the parent company of TanzaniteOne,
plans to offload a 20 percent stake during a cross-listing and initial public
offering on the Dar es Salaam Stock Exchange.
The firm plans dual listing at Dar es Salaam Stock Exchange in this year’s
second quarter.
The AIM-listed miner, which holds the licence to the largest of four
mining blocks in the world's only tanzanite-producing area near Mount
Kilimanjaro, returned to profitability in 2010 after two years of losses.
It expects China to become the next big market for the coloured
gemstone after the United States, as the market rebounds from the global
financial crisis.
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| Mr Mpungwe |
"We are planning a cross-listing through an IPO, whereby the
existing shareholders will dilute their shareholding," deputy chairman,
Ami Mpungwe told Reuters on Thursday.
Gabriel Kitua, chief executive of Tanzania's bourse, forecast strong
interest from investors on Richland's shares.
"There is a very huge demand for new IPOs in Tanzania. If
investors will be satisfied by the profitability of the company, I expect the
Richland IPO to be overly oversubscribed," he said.
 |
| Mr Kitua |
Mpungwe said Richland's Tanzanian unit, TanzaniteOne Mining Ltd,
planned to produce 2.5 million carats this year compared with the 2.38 million
carats it aimed to produce last year.
While last year's results have yet to be released, Mpungwe was positive
the company had met its production target.
He said the miner was aiming for a revenue of $24 million from this
year's production of 2.5 million carats.
Richland posted sales of $4.7 million in the third quarter of 2011 from
the production of 573,771 carats, a 24 percent jump.
Source: Reuter,af.reuters.com, reported by Fumbuka Ng'wanakilala in Dar es Salaam
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