All five directors of Tanzanite One have taken shares in lieu of directors' fees that they were owed.
The directors' fees have not been paid since October 2009. The total unpaid fees to directors and senior management had mounted up to $383,000. The directors' fees were £157,000 of this.
The 12p a share purchase price of the shares is the volume weighted average price of the shares over the period that the fees were owed. The shares were trading at over 40p each one year ago.
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Executive chairman Ami Mpungwe received the most shares, taking his stake to 3.14%, with non-executive deputy chairman Ed Nealon not far behind. Nealon's stake is 2.96%.
Tanzanite One has returned to profit and it intends to pay its fees in cash from now on.
In the six months to June 2010, revenues grew from $4.91m to $8.55m. A pre-tax loss of $1.33m was turned into a profit of $739,000. There was a small operating cash outflow during the period. The company produced 1m carats of tanzanite stones during the first half.
There is a ban on exporting rough tanzanite of more than 5 carats from Tanzania. Tanzanite One is in talks with the Tanzanian government about developing domestic cutting operations.
There was a glitch in last Friday's story on the sale of shares in Brooks Macdonald by seven of its directors. The values of each of the share sales was ten times the correct level. The total value of the sales was £2.2m rather than £22m.
Top Director Buys
Tanzanite One (TNZ) Director name: Mr Ami R MpungweAmount purchased: 342,357 @ 12.00p Value: £41,083
Elektron (EKT) Director name: Mr Geoffrey SpinkAmount purchased: 125,000 @ 32.00p Value: £40,000
Tanzanite One (TNZ) Director name: Mr Edward F G NealonAmount purchased: 331,741 @ 12.00p Value: £39,809
Canaccord Financial Inc. (CF.) Director name: Mr Michael Deane HarrisAmount purchased: 5,000 @ 641.06p Value: £32,053
Tanzanite One (TNZ) Director name: Mr Nicholas T SibleyAmount purchased: 252,123 @ 12.00p Value: £30,255
Tanzanite One (TNZ) Director name: Dr Bernard OlivierAmount purchased: 212,314 @ 12.00p Value: £25,478
Compass Group (CPG) Director name: Ms Susan MurrayAmount purchased: 4,500 @ 544.00p Value: £24,480
Johnson Service Group (JSG) Director name: Mr Paul MoodyAmount purchased: 100,000 @ 20.12p Value: £20,120
Tanzanite One (TNZ) Director name: Mr Ryke Zane Swanepoel Amount purchased: 97,909 @ 12.00p Value: £11,749
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