Redaurum to sell River Ranch

Redaurum (RRK-T) has suspended operations at its 50%-held River Ranch diamond mine in Zimbabwe.

Redaurum says it has entered negotiations with various prospective buyers.

The mine had been operated by a joint-venture company owned equally by Toronto-based Redaurum and Australian-based Auridiam Consolidated. Last summer, the two companies terminated their joint-venture agreement and entered into a new agreement, thereby settling a dispute related to the operation and management of the mine.

River Ranch produced more than 39,000 carats of diamonds in January, which were sold for an average of US$15.80 per carat. A further shipment of 40,000 carats of diamonds, including one “good-quality” 19-carat stone, will be offered for sale shortly.

Meanwhile, Redaurum has also decided to sell its Kelsey Lake diamond mine in Colorado, the only diamond mine in the U.S.