---ADDS SHARE PRICE AND BROKER COMMENT---
Richland Resources (LON:RLD) has brought in around US$640,000 from the sale of its marketing and sales office of rough gem stones in Dubai.
The office, once central to trading rough stones, is now deemed non-essential after the firm pursued a strategy of increasing the amount it sells of cut and polished stones over rough stones.
Initially responding to a ban on exporting rough tanzanite stones over 1 carat, Richland is now building alternative sales channels through its cutting and polishing subsidiary Urafiki Gemstones EPZ.
Chief executive Bernard Olivier said: "Working with the Tanzania Government we have successfully established an in-country cutting and polishing operation that allows Richland to deliver beneficiated stones to its customers.
"Consequently, marketing and sale of rough gemstones through the Dubai office has been wound down with the company being able to realise cash from today's sale."
Meanwhile, the firm added that for the continuity of the Dubai operations, it has entered into a six-month lease with the buyer of the Dubai Office for renting it at around US$45,500 which has been paid in advance from the proceeds of the sale.
House broker RFC Ambrian notes that the development of the company's sales and marketing has been "significant" over the last six months.
Analyst Craig Foggo highlights the launch of its new online store, the recent long-term supply agreement with a Chinese jewellery retailer and increased retail sales (from outlet stores) by over 30% year-on-year (YoY) in 2012 to US$2.4mln.
"This marketing and sales development reflects the years of hard work that have gone into the in-country Export Processing Zone (EPZ) cutting and polishing facility," Foggo says.
The broker, which rates the shares a 'hold', notes that while the sales growth initiatives are a positive development, further news on financing and progress on securing the southern areas of the mine in Tanzania in conjunction with new government partner are still awaited.
As revealed in September, Richland's first half had been severely affected by illegal underground mining activities.
Ambrian said it also needed to see evidence of a sustained withdrawal of these illegal miners from the northern shafts and underground development.
Richland shares were unchanged today at 3.875p.