Business
Acquisition of Calibrated Dia
Acquisition of Calibrated Dia.
About this update from Gem Diamonds Limited
[{"type":"text","content":"\n RNS Number : 0091E Gem Diamonds Limited 23 September 2008 \n \n23 September 2008\nGEM DIAMONDS LIMITED\n('Gem Diamonds' or the 'Company')\n\nACQUISITION OF CALIBRATED DIAMONDS \n\nHIGHLIGHTS\n\n\nAcquisition of Calibrated Diamonds for US$5.9 million (ZAR47.0 million)\n\n\nProvides ability to cut and polish top quality diamonds to high and consistent standard\n\n\nAcquisition compliments diamond beneficiation strategy \n\n\nAllows for greater margin capture post the mine gate on small and medium size top quality diamonds\n\n\nComplements existing diamond beneficiation technology\n\n\n\nGem Diamonds (LSE:GEMD), the FTSE250 diamond company, is pleased to announce the acquisition of Calibrated Diamonds Investment Holdings (Pty) Limited (“Calibrated Diamonds”), together with its state of the art diamond processing assets, intellectual property and management expertise from Petra Diamonds Limited (“Petra”) for a total cash investment of US$5.9 million (ZAR 47.0 million) ( the “Transaction”).\n \nCalibrated Diamonds makes use of a proprietary high technology process and computer software to manufacture perfectly symmetrical polished diamonds to a high degree of accuracy that require minimal manual polishing. The process maximizes the polished yield and produces symmetrical polished diamonds to a very high and consistent standard.\n \nThe Company will establish a technically advanced facility in Mauritius which will use the Calibrated technology to beneficiate a portion of Gem Diamonds’ top quality production.\n \nAs part of the Transaction, Gem Diamonds has agreed to provide Petra with access to its beneficiation technologies to cut and polish their high value diamonds. This arrangement is subject to agreed commercial terms and available capacity after processing Gem Diamonds’ own rough diamonds.\n \nGem Diamonds’ beneficiation strategy was formalised after the Company undertook several successful diamond polishing and tender trials over the last twelve months on diamonds from its Letšeng and Ellendale mines, using both technologies. \n \nGem Diamonds recently announced the successful recruitment of the Antwerp-based executive team from Matrix Diamond Technology who will be estab...