Business
Completion of Kimberley Under
Completion of Kimberley Under.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n RNS Number : 1570M Petra Diamonds Ld 19 May 2010 \n \n\n \n \n\n\n\n\nFor immediate release\n\n\n19 May 2010\n\n\n\n\n\n \nAIM: PDL \n \nPetra Diamonds Limited \n(\"Petra\" or \"the Company\")\n \nCompletion of Kimberley Underground Acquisition\n \n \nPetra Diamonds Limited announces the completion of its previously announced transaction with De Beers Consolidated Mines Limited (\"De Beers\") to acquire the mining and associated assets (\"Assets\") previously used by De Beers in the operation of the Kimberley Underground diamond mines (\"Kimberley Underground\") in Kimberley, South Africa. \n \n \nHighlights\n \n· Petra and De Beers entered into the agreement for the sale of the Kimberley Underground Assets in September 2007, however the transaction has taken longer than originally anticipated to complete due to complexities related to the new order mining right, which have now been completely resolved\n \n· The purchase consideration of R78.5 million (US$10.4 million) has been settled by Petra assuming De Beers` rehabilitation obligations with regards to Kimberley Underground of R63.5 million (US$8.4 million) and the payment in cash by Petra to De Beers of R15 million (US$2.0 million)\n \n· Petra has been operating Kimberley Underground under care and maintenance since September 2007, during which time Petra has built up substantial ore stockpiles totalling approximately 500,000 tonnes (estimated to contain 90,000 carats); processing and diamond recoveries will now commence forthwith\n \n· Kimberley Underground is expected to produce 100,000 carats in the financial year to June 2011 (\"FY 2011\"), rising to 180,000 carats per year thereafter following commissioning of a second production plant by June 2011 \n \n· All the capital expenditure (\"Capex\") required for the rehabilitation of the underground operations and the construction of the new plant at Joint Shaft has already been spent and capitalised; the operation is therefore expected to be profitable and cash generative from month one \n \n \nJohan Dippenaar, Petra's CEO, commented,\"The Kimberley Underground mines' long history of production is testament ...