TanzaniteOne auction sales hits 5bn/-

TanzaniteOne Mining, a unit of Richland Resources, sold tanzanite stones worth over 3 million US dollars (about 4.8bn/-) during the Arusha gemstone fair last month.

The company, which is the biggest miner of rare violet blue gemstone in the world, said the achievement during the gem show almost matched the total sales of 3.96 million US dollars (about 6.34bn/-) for the first quarter of 2011.

Richland Resources Chief Executive Officer Bernard Olivier said the company restricted sales in the first quarter to only 1.5 million US dollars to let most minerals to trade during the auction.

"The company is very pleased with the success of the Arusha gem show in Tanzania and looks forward to reporting the final sales figures achieved during the show in our next operational update," Mr Olivier said.

Apart from achieving good sales, the mine new resource has been upgraded under a Joint Ore Reserves Committee (JORC), a mineral resources classification scheme for public disclosure of information relating to mineral properties.

The mine at Merelani, in Manyara, now has a JORC complaint Indicated Resource of 30.6 million carats and Inferred Resource of 74.4 million carats, totalling a combined resource of 105 million carats. 

The firm also said in the first quarter it officially submitted its prospectus to the Tanzanian Capital Markets Securities Authority (CMSA) with a view to obtaining a secondary listing on the Main Investment Market Segment (MIMS) of the Dar es Salaam Stock Exchange (DSE).

"Our listing on the DSE and the review and approval of our prospectus is taking longer than expected but we are in continuing discussions to try and get our dual listing on the DSE completed as soon as possible," Mr Oliver said.

However, the Richland Resources said discussions are ongoing with the CMSA to try and address issues raised by the authority and to assist in speeding up the process. CMSA Principal Public Relations Officer Charles Shirima told the 'Daily News' that the dual listing of the company would take place without indicating the date.

TanzaniteOne, according to a source, seeks to raise 4.5bn/- during the IPO which has a green-shoe option -- a window that allows the underwriter for a new issue to increase the size of the issue to meet demand. 

In this year's first quarter the company achieved production totalling 533,400 carats from the processing of 10,488 tonnes of material at an average grade of 51 carats per tonne.
Source: The Daily New,http://www.dailynews.co.tz, reported by Abduel  Elinaza
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