14th Nov 2007 11:30
Gem Diamonds Limited14 November 2007 14 November, 2007 GEM DIAMONDS LIMITED REMARKABLE 493 CARAT LETSENG LEGACY DIAMOND SOLD FOR US$10.4 MILLION - The Letseng Legacy is the world's 18th largest diamond ever recovered - The diamond was recovered at Letseng le Terai Mine in Lesotho on the 7th of September 2007 - The sale of the Letseng Legacy was by way of tender in Antwerp, where eleven diamantaires bid for the stone - The price represents an extraordinary price per carat of US$21 000, against a global average diamond price of US$81 per carat - The Letseng Legacy is expected to yield an historic polished stone of over 100 carats Gem Diamonds Limited (Gem Diamonds) and the Government of the Kingdom of Lesothoare pleased to announce the sale of the Letseng Legacy, a remarkable 493 caratdiamond, in Antwerp for US$10.4 million. The world's leading diamantaires participated in the tender and the winning bidwas made by SAFDICO, the manufacturing arm of Graff Jewellers. Graff Jewellersare one of the world's leading diamond jewellery purveyors and were the winningbidder for the Lesotho Promise diamond in 2006. There were also strong bidsfrom Rosy Blue and Premier Diamonds. The Letseng Legacy ranks as the 18th largest diamond ever found and was named toreflect the growing legacy that the Letseng le Terai Mine is creating as aproducer of significant diamonds. Letseng Diamonds, which is 70% owned by GemDiamonds and 30% owned by the Government of the Kingdom of Lesotho, has nowproduced three of the world's top 20 diamonds. Two of these were recovered inthe last 13 months - the 603 carat Lesotho Promise in August 2006 and this 493carat diamond in September 2007. Following the opening of the tender offers, the winning bid of US$10.4 millionwas announced by Lesotho's Minister of Forestry and Land Reclamation RalechateLincon Mokose at the Antwerp World Diamond Centre at an event attended by GemDiamonds management and directors, the Lesotho Ambassadors to Belgium andGermany MaMoruti Tiheli and Makase Nyaphisi, Johnny Kneller of the winningbidder SAFDICO and leading figures from the Antwerp diamond community includingFreddy Hanard of the Antwerp World Diamond Council. Clifford Elphick, CEO of Gem Diamonds said: "The sale of the Letseng Legacy at this impressive price is a reflection of therarity of the remarkable diamonds that the Letseng Mine is producing. Themarket for extraordinary diamonds continues to grow which bodes well for Letseng's success as production doubles during the course of 2008. We look forward tosharing this success with our partners the Government of Lesotho." Johnny Kneller , the CEO of the northern hemisphere of SAFDICO commented: "We are very pleased to have once again made the winning bid for such anhistoric diamond. To have acquired the Letseng Legacy as well as the LesothoPromise is a great achievement for SAFDICO and Mr. Graff. " Gem Diamonds LimitedClifford ElphickTel: +44 203 043 0280 Gem Diamond Technical Services (Pty) LimitedAngela ParrMob: +27 83 578 3885 Pelham PRCandice SgroiTel: +44 207 743 6376Mob: +44 7894 462 114 About Gem Diamonds Gem Diamonds is a diamond mining company with a balanced portfolio of aproducing kimberlite mine, two producing alluvial mines, development projectsand long-term prospects. Established in July 2005, Gem Diamonds is pursuing anaccelerated growth strategy and aims to become one of the world's leadingdiamond companies. Gem Diamonds currently has one producing kimberlite mine, Letseng, in Lesotho, two producing alluvial mines - Cempaka in Indonesia andMbelenge in the Democratic Republic of Congo (DRC), a kimberlite developmentproject in Botswana, two development projects in the DRC, one in the CentralAfrican Republic and an option to develop the Chiri kimberlite concession inAngola. The Company recently made an offer to Kimberley Diamond Company's shareholdersto acquire their shares in this company, which owns the Ellendale Mine in northWestern Australia, and which was approved by Gem Diamonds' shareholders at anExtraordinary General Meeting on 16 October 2007. Gem Diamonds currently has a specific focus towards higher value diamonds, asegment of the market that its management believes will deliver superior longterm returns. For further information about Gem Diamonds visit www.gemdiamonds.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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