Business
Class 2 Announcement
Class 2 Announcement.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n\n \n\n\n\n\n31 May 2023\n \n \n \n\n\nLSE: PDL\n\n\n\nPetra Diamonds Limited (\"Petra\" or the \"Company\" or the \"Group\")\n \nClass 2 Announcement\n \nEntry into definitive transaction agreements pursuant to MOU for the sale of 50% of Petra's holding in Williamson Diamonds Limited\n \nFurther to the announcement made on 15 December 2021 in relation to the entry by Petra into a non-binding Memorandum of Understanding (the MOU) with Caspian Limited (a company now known as Taifa Mining and Civils Limited, Taifa), Petra announces it has entered into definitive transaction documents which give effect to the MOU and involve the sale by Petra of 50% less one share of the entity which holds Petra's shareholding in Williamson Diamonds Limited (WDL) and a prorated portion of shareholder loans owed by WDL[1] for a total consideration of US$15m (the Transaction). \n \nUnder the UK's Listing Rules, the Transaction is Class 2 and as such this announcement is made in accordance with Petra's disclosure obligations pursuant to Chapter 10 of the Listing Rules. \n \nPetra has entered into these transaction documents with Pink Diamonds Investments Limited (Pink Diamonds), a company nominated by and affiliated with Taifa. Taifa remains the long-term technical services contractor at the Williamson Mine.\n \nPink Diamonds' payment of the US$15m purchase price will be satisfied through payments owed by WDL to Taifa for past technical services, dependent on WDL's ability to meet these obligations. It is expected that these payments will be received by Petra in instalments over the next five years.\n \nWDL is the operator of the Williamson Mine, and is currently 25% owned by the Government of Tanzania and 75% owned by Petra, with Petra having acquired its majority interest in WDL in 2009. Petra entered into a Framework Agreement with the Government of Tanzania in December 2021, in which it was agreed that Petra's effective interest in WDL will decrease to 63%, with the Government of Tanzania's interest increasing to 37%.\n \nUpon completion of the Transaction and the Framework Agreement, Petra and Pink Diamonds will each indirectly hold an effective 31.5% interest in WDL, with Petra retaining a controlling interest.\n \nCompletion of the Transaction is subjec...