Business
Cullinan Diamon Mine Acq
Cullinan Diamon Mine Acq.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n Petra Diamonds Ld\n22 November 2007\n\n\n\n\n\n\n\n22 November 2007 AIM: PDL\n\n Petra Diamonds Limited\n\n Acquisition of Cullinan Diamond Mine\n\n\n\n\n\nPetra Diamonds Limited ('Petra' or 'the Company' or 'the Group') announces that\nit has, as a member of the Petra Diamonds Cullinan Consortium ('PDCC'), entered\ninto an agreement ('the Agreement') with De Beers Consolidated Mines Limited ('\nDe Beers') to acquire the Cullinan diamond mine ('Cullinan') in South Africa ('\nthe Transaction').\n\n\n\n\n\nHighlights\n\n• PDCC to acquire Cullinan from De Beers for a total cash consideration\nof R1 billion (US$149.0 million); Petra's share of the consideration is R325\nmillion (US$48.4 million)\n\n\n• The Transaction represents a major development towards achieving \nPetra's strategy of value creation for its shareholders by growing its \nproduction and revenue base alongside its world-class exploration portfolio. \nA major producing diamond asset such as Cullinan very rarely becomes available, \nand PDCC is proud to be acquiring the assets after a long, transparent and \ncompetitive tender process\n\n\n\n• According to information made available to Petra by De Beers, the\nCullinan kimberlite pipe is the second largest indicated diamond resource in the\nworld by in-situ value\n\n\n• In the year to December 2006, De Beers produced 1.15 million carats at\nthe mine, with a market value of R504.9 million (US$75.2million); Petra will be\nthe operator and will (as at Koffiefontein) make production changes at the mine.\nPetra expects PDCC's average annual production from Cullinan will meet, and\npotentially exceed, the recent production achieved by De Beers adding\nsubstantially to Petra's group revenues (37% interest)\n\n• Many of the world's most spectacular diamonds have been recovered at\nCullinan, including the 3,106 carat Cullinan Diamond, the largest gem diamond\never found. It was cut to form the 530 carat Great Star of Africa and the 317\ncarat Lesser Star of Africa set in the Crown Jewels of Britain. The mine is\nrenowned as a source of large diamonds and has produced over 300 stones weighing\nmore than 100 carats, and around a quarter of all of the world's diamonds\nweighing more than 400 carats. Cullinan is also the world's only significant\nsource of blue diamonds, which are highly desirable in the jewellery mark...