1st Dec 2015 08:19
LONDON (Alliance News) - Petra Diamonds Ltd said Tuesday that it has bought an interest in the Kimberley Mines in South Africa from De Beers Consolidated Mines Pty Ltd, in consortium with Ekapa Mining Pty Ltd, for around USD7.2 million.
Ekapa Mining will have a 50.1% stake in Kimberley Mines, whilst Petra will have a 49.9% stake. Petra will pay around USD3.6 million for its portion of the venture.
The Kimberley Mines are expected to be cashflow positive in their first year of operation. The venture expects to produce around 700,000 carats per annum in its first three years of operation, with revenue of around USD65 million per year based on an assumed diamonds price of USD95 per carat.
"We are delighted to have formed this consortium with Ekapa Mining in the acquisition of an interest in the Kimberley Mines, and we look forward to working with them to build upon their proven capabilities in tailings retreatment operations in Kimberley, as well as their strong local relationships. Together we are showing our commitment to shaping a new future for the diamond mining operations of Kimberley, to the benefit of our employees, shareholders and all stakeholders," said Petra's Chief Executive Officer Johan Dippenaar in a statement.
Shares in Petra were up 5.5% at 67.70 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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