Business
Disposal
Disposal.
About this update from Gem Diamonds Limited
[{"type":"text","content":"\n Gem Diamonds Limited\n10 September 2007\n\n\n\n10 September, 2007\n\n GEM DIAMONDS LIMITED\n\n ('Gem Diamonds' or the 'Company')\n\n\n SALE OF WOODLARK GOLD PROJECT\n\n\nGem Diamonds Limited (LSE: GEMD) ('Gem Diamonds') is pleased to announce it has\nsold the Woodlark Gold Project for US$26.5 million to a company jointly owned by\nprivate equity fund Pacific Road Resources and resources financing and\ninvestment business RMB Resources Limited, a subsidiary of Rand Merchant Bank.\n\n\nThe purchase price will be settled in cash and the effective date is 1 July\n2007.\n\n\nThe Woodlark Gold Project formed part of BDI Mining, which was acquired by Gem\nDiamonds in June 2007 for US$80.1 million. The divestment of the gold asset\nreduces the effective price of the remaining asset, the Cempaka alluvial diamond\nmine in Indonesia, to US$53.6 million.\n\n\nWork at Cempaka is ongoing where the decision has been taken to invest US$16\nmillion to improve mining efficiencies, infrastructure and plant and allow for\nan increased level of production to 80,000 bcm per month.\n\n\nGem Diamonds CEO Clifford Elphick commented:\n\n'The sale of Woodlark was anticipated at the time of the acquisition of BDI\nMining and the price achieved is pleasing. This disposal allows the new\nmanagement of BDI Mining to focus exclusively on diamond production at Cempaka,\nin line with Gem Diamonds' strategy of becoming one of the world's leading\ndiamond companies'.\n\n\nFor further information:\n\n\nGem Diamond Technical Services\nClifford Elphick\nAngela Parr\nTel: +27 83 578 3885\n\n\nPelham PR\nCandice Sgroi\nTel: +44 207 743 6376\n\n\n\nAbout Gem Diamonds\n\nGem Diamonds is a diamond mining company with a balanced portfolio of a\nproducing kimberlite mine, two producing alluvial mines, development projects\nand long-term prospects. Established in July 2005, Gem Diamonds is pursuing an\naccelerated growth strategy and aims to become one of the world's leading\ndiamond companies. Gem Diamonds currently has one producing kimberlite mine, Let\nseng, in Lesotho, two producing alluvial mines - Cempaka in Indonesia and\nMbelenge in the Democratic Republic of Congo (DRC), a kimberlite development\nproject in Botswana, three development projects in the DRC, one in the Central\nAfrican Republic and an option to develop the Chiri kimberlite concession in\nAngola.\n\...