Vaaldiam Pursues Sale of Non-Core Assets

Vaaldiam Mining Inc. (‘Vaaldiam’ or ‘the Company’) (CA:VAA  0.30, -0.01, -1.64%) and Base Iron Ltd. (‘BIL’) (ASX: BSE) announce that BIL successfully completed two key ‘conditions precedent’ for the acquisition of the Kwale Mineral Sands Project from Vaaldiam. This was previously announced in February 2010. The Government of Kenya has approved the transaction after seeing BIL’s diligence for the project.

Vaaldiam CEO Robert Jackson said “This is real progress towards completing the transaction, which generates cash flow with zero further investment by Vaaldiam. Kwale is technically sound. The GoK now recognizes the importance of this project to Kenya and cooperated in granting its approval. Our strategy is to sell non-core assets and deploy the funds on diamond and gold assets in Brazil. At closing, Vaaldiam will receive US$3 million in cash and a cash royalty of 1.5% on all product revenue from Kwale. It is conceivable that total revenues for the project could significantly exceed US$1 billion over its 11-year life, returning substantial value to Vaaldiam from the royalty”.

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