Richland Resources receives initial payment from Sky Associates

5th Dec 2014 09:03

Richland Resources was one of the best performers in the AIM All-share on Friday after it received the initial payment from Sky Associates Group for the sale of its Tanzanian mining, exploration and cutting operations.Richland's shares shot up 28.8% to 2.24p on Friday morning.On November 25, Richland agreed to sell its tanzanite mining business and tsavorite licence interests to Sky Associates for $5.1m. The company also agreed to transfer $10.8m in liabilities to Sky Associates as part of the deal.Richland has now received the initial payment from Sky Associates of $510,000, while a further $510,000 is being held under escrow arrangements organised as part of the deal, which Richland will receive once certain conditions have been made, it said in a statement.Although the initial payment have been made, the deal still awaits approval from Richland's shareholders, the Tanzanian authorities and the South Africa Reserve Bank.