JOHANNESBURG (miningweekly.com) – Diversified exploration company Thabex would sell 9,33% of its interest in Lesotho-based diamond-miner, Angel Diamonds, to UK diamond exploration company, Mantle Diamonds.

The South African explorer said on Wednesday that it and five other stakeholders in Angel have agreed to sell a 13,33% stake to Mantle for $500 000.

Thabex, which owned a 70% stake in Angel Diamonds, had initially planned to sell 42% of its stake to Mantle for $2-million, as part of a larger plan to generate cash.

Mantle was also supposed to have the option to acquire the balance of Thabex’s interest in Angel at market value, following the completion of a feasibility study and the granting of a mining right.

However, in April, the miner announced that it would not sell its interest in the subsidiary after the South African Reserve Bank had blocked the deal, stating that the subsidiary could not be disposed of on extended credit terms and that the issuance of Mantle Diamonds ordinary shares to the Angel shareholders, would constitute a loop structure.

The shareholders had received $200 000 of the purchase agreement as a prepayment, with a further three payments of $100 000 to be paid on a monthly basis between June and August.

The proceeds of the transaction would be used for Thabex’ working capital requirements and to enable it to take further prospecting at its Monastery mine.

Angel Diamonds held a prospecting licence over the Kolo Kimberlite project, in Lesotho, for which it had applied for a mining lease from the mining commissioner of Lesotho.

In March, Thabex reported that the mining lease application included a prefeasibility investigation with the view of establishing a diamond mining operation, with a planned minimum throughput capacity of 5 t/h, using a dense media separator recovery plant.

The company estimated an inferred resource of about 2,7-million tons, at an average grade of 208 710 ct, from the surface to a depth of 100 m, at the project.

Thabex said that it would make details of the financial effects of the transaction available when its results for the year ended February 28, 2009, were published on the JSE’s Stock Exchange News Service.

However, the company’s listing on the JSE was suspended on Wednesday morning, after it failed to submit its provisional financial reports to the stock exchange within the stipulated three-month period.

The company said that it was planning to publish its results for the 2009 financial year as soon as possible.

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