Business
Acquisition
Acquisition.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n Petra Diamonds Ld\n14 September 2007\n\n\n\n Petra Diamonds Limited\n\n\n\n Acquisition of Kimberley Underground Mines\n\n\n\n\n\nPetra Diamonds Limited ('Petra' or 'the Company') announces that it has entered\ninto a conditional agreement ('the Agreement') with De Beers Consolidated Mines\nLimited ('De Beers') to acquire the mining and associated assets ('Assets')\npreviously used by De Beers in the operation of the Kimberley Underground\ndiamond mines ('Kimberley Underground'), which are situated near Kimberley,\nSouth Africa.\n\n\n\nHighlights\n\n • Petra to acquire the mining and associated assets of the Wesselton, Du\n Toitspan and Bultfontein mines (together the Kimberley Underground mines)\n from De Beers for a total consideration of R78.5 million\n • Petra to run the mines on a care and maintenance basis on behalf of De\n Beers until all required mining authorisations are received from the South\n African authorities\n • Based on historical production and sales information , Petra expects\n annual sales from Kimberley Underground in excess of 100 000 carats at an\n average of US$160 per carat once full production is recommenced, giving\n gross annual revenues in excess of US$16 million and a life of mine of at\n least 12 years\n\n\n\nAdonis Pouroulis, Petra's Chairman commented 'Alongside Petra's highly\nprospective Angolan exploration assets the acquisition of Kimberley Underground\nis an important addition to Petra's substantial base of producing assets in\nSouth Africa. Together Kimberley Underground, Koffiefontein and Petra's fissure\nmines will contribute annual production in two years time of around 400,000\ncarats.'\n\n\n\nBased on historical production and sales information Petra expects annual sales\nfrom Kimberley Underground in excess of 100,000 carats and gross revenues in\nexcess of US$16 million, adding approximately US$12 million (74% JV share *) to\nthe Petra group revenues in the year to June 2009.\n\n\n\nThe consideration of R78.5 million (US$11 million) is to be settled by Petra\nassuming De Beers' rehabilitation obligations with regards to Kimberley\nUnderground of R63.5 million (US$8.9 million), and the payment in cash by Petra\nto De Beers of R15 million (US$2.1 million).\n\n\n\nThe acquisition is conditional on the required mining rights and associated\napprovals from the South African Dep...