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IGE Acquires Diamond Operations From Pangea

Mar 26, 2010 6:17 AM   By Jeff Miller
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RAPAPORT... Shareholders in IGE Resources AB, formerly known as International Gold Exploration, approved the IGE's acquisition of Pangea DiamondFields' diamond operations across southern Africa. IGE will issue a maximum of 495,399,057 new shares exclusively to Pangea DiamondFields for its diamond licenses and operations and Pangea will hold 38.4 percent of the outstanding IGE shares.

The Stockholm-based IGE now has a verified resource base comprised of more than 8.4 million carats of rough diamonds and a total of nine diamonds projects across three nations in Africa. IGE told investors that it expects to generate revenue from two more diamond projects within the next 12 months.

Specifically speaking, IGE's diamond holdings include alluvial and kimberlite diamond assets in Angola, South Africa and the Democratic Republic of the Congo. IGE noted that its Luxinge diamond concession in Angola is ready for commercial production and is situated approximately 31 miles (50 kilometers)  from Pangea's  diamond-producing Cassanguidi concession. The Bakerville project in South Africa is expected to commence production later this year, as well, according to IGE's statement.

Boris Kamstra, Pangea's chief executive officer (CEO), will oversee the management of IGE's diamond-based activities. Earlier this month, Kamstra said, "The diamond operations of IGE and Pangea are an excellent fit. The combined interests will comprise a well balanced project portfolio, highly experienced exploration and operational staff and sufficient critical mass to be an important player in African diamond mining. In particular, combining our respective operations in southern Africa creates opportunities to maximize the efficiency and reach of the merged organization."

Pangea's chairman, Bill Nairn, added, "In particular, the board is encouraged that this merger will enable the rapid commercialization of Pangea's five viable diamond projects, which are the result of four years of extensive and professional exploration work and evaluation by the Pangea team and believe that the new IGE will enable the potential of those projects to be reached, resulting in additional value creation for Pangea's shareholders."

Additionally, Robert George Still, the deputy chairman on Pangea's board of directors, and Pangea geologist Anton Esterhuizen were elected to IGE's board.


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Tags: Angola, Jeff Miller, Pangea DiamondFields, Production, South Africa
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