Business
Acquisition of interest in Kimberley Mines
Acquisition of interest in Kimberley Mines.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n \nRNS Number : 4614H Petra Diamonds Limited 01 December 2015 \n\n \n \n\n\n\n\n1 December 2015\n\n\nLSE: PDL\n\n\n\n\n \n \nPetra Diamonds Limited\n(\"Petra\", the \"Group\" or the \"Company\")\n \nPetra to acquire an interest in the Kimberley Mines in South Africa\n \n \nPetra Diamonds Limited announces the acquisition of an interest in the Kimberley Mines in South Africa from De Beers Consolidated Mines Proprietary Limited (\"DBCM\"), in a consortium with Ekapa Mining (Pty) Ltd (\"Ekapa Mining\"), an established Kimberley-based diamond tailings producer (\"the Transaction\"). \n \n \nHighlights\n· Ekapa Minerals (Pty) Limited (\"Ekapa Minerals\"), the consortium's acquisition vehicle owned by Ekapa Mining (50.1%) and Petra (49.9%), has entered into a binding agreement with DBCM to acquire the Kimberley Mines as a going concern. \n \n· The acquisition consideration of ZAR102 million (ca. US$7.2 million) will be funded by Ekapa Mining and Petra according to their percentage interests in the consortium, with Petra's share being ZAR50.9 million (ca. US$3.6 million). \n \n· The Kimberley Mines acquisition comprises a number of tailings dumps in Kimberley (Tailings Mineral Resources - \"TMR\"), associated plant (the Combined Treatment Plant, the \"CTP\"), employees and all other assets and liabilities, acquired by Ekapa Minerals on a going concern basis.\n \n· The Kimberley Mines TMRs have resources of 2.8 Mcts, as well as further potential for the treatment of other TMR deposits, containing an estimated 4.4 Mcts (as at 31 December 2014); grade of the TMRs is expected to be circa 11 cpht for the first three years of operation by Ekapa Minerals, reducing to circa 6 cpht thereafter, when the higher grade tailings have been treated. \n \n· The CTP is a relatively modern plant incorporating 'state of the art' technology and currently has a 6 Mtpa capacity. It is capable of treating a range of ore sources, including TMRs and run-of-mine (\"ROM\") material. \n \n· Ekapa Minerals expects to produce circa 700,000 ctpa in the first three years of operation of the Kimberley Mines, with revenue of ca. ZAR920 million (ca. US$...