Asa's SouthernEra sells lossmaking diamond mine

Asa Resources', 73% owned SouthernEra Diamonds has agreed to dispose of its Klipspringer diamond mine interests for £1.37m cash and a 3% ongoing royalty.

SouthernEra confirmed it would dispose of the diamond mine located in South Africa, with 50% of the sum payable in cash up front and 50% once regulatory approvals have been received by the local government.

Asa Resource would additionally earn 3% royalty on gross monthly diamond sales, with SLA Capital named the purchaser on behalf of Greenhurst Mining and Exploration company.

Toindepi Muganyi, Asa's chief executive officer, said: "The board commissioned an independent review by a diamond mining and 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 £0.60 or $0.80."