Business
Acquires majority stake in Wi
Acquires majority stake in Wi.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n RNS Number : 9951C Petra Diamonds Ld 09 September 2008 \n \n\n\n\n\n9 September 2008\n\n\nAIM: PDL\n\n\n\n\n\n\nPetra Diamonds Limited\n\nPetra acquires majority stake in Williamson Diamond Mine\n\n\nPetra Diamonds Limited ('Petra' or 'the Company' or 'the Group'), the leading international diamond mining group, today announces that it has entered into an agreement to acquire a 75% interest in Tanzania's renowned Williamson diamond mine ('Williamson') for a cash consideration of US$10 million.\n \nAt 146 hectares, Williamson is the largest kimberlite pipe ever to be mined, having been operated continuously as an open pit mine for almost 70 years. During this time it has produced over 20 million carats, and there remains a substantial resource of some 40 million carats. The mine regularly produces large, high quality stones and is a source of rare and extremely valuable fancy pink diamonds. \n\n\nHighlights\n\n\n\nPetra will acquire the entire issued share capital of Willcroft Company Limited ('Willcroft') from Cheviot Holdings Limited ('Cheviot'), a wholly owned subsidiary of De Beers Société Anonyme ('De Beers'), for US$10 million\n\n\n\n\n\nWillcroft owns 75% of Williamson Diamonds Limited ('WDL'), the sole owner and operator of the Williamson mine, while the Government of the United Republic of Tanzania ('the Government of Tanzania') owns the remaining 25% \n\n\n\n\n\nThe total cash consideration of US$10 million will be funded entirely from Petra's internal cash resources. The acquisition is scheduled for completion in mid October 2008\n\n\n\n\n\nThe acquisition marks Petra's entry into Tanzania, further diversifying the Group's geographical spread\n\n\n\n\n\nThe acquisition is in line with the Group's aim of creating a diamond production portfolio of global significance, complemented by a substantial and valuable resource base\n\n\n\n\nJohan Dippenaar, Petra's Chief Executive Officer, commented: 'Petra already owns three major diamond mines, Cullinan, Koffiefont...