Business
Divestment of Kono Project -
Divestment of Kono Project -.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n RNS Number : 2219L Petra Diamonds Ld 04 May 2010 \n \n\n \n \n\n\n\n\nImmediate Release\n\n\n4 May 2010\n\n\n\n\n \n \nPetra Diamonds Limited \n(\"Petra\" or \"the Company\")\n \nDivestment of Kono Project - Sierra Leone\n \n \nPetra Diamonds announces that it has reached agreement with Stellar Diamonds plc (\"Stellar\") to exchange its interest in the Kono Diamond Project (\"Kono\") in Sierra Leone for shares in Stellar, the project's joint venture partner. \n \nPetra is focused on delivering production and revenue growth from its portfolio of world-class kimberlite mines, with a core objective to grow annual production from one million to over three million carats. The Kono kimberlite fissure project, whilst at an advanced stage of exploration and demonstrating positive project parameters, is not of a suitable scale to contribute to this objective and is no longer a core asset in Petra's portfolio.\n \nKono has no carrying value in Petra's balance sheet and therefore there are no impairments to be recognised by Petra with regards to the divestment. \n \n \nHighlights\n· Strategic step in terms of Petra's core focus on delivering substantial production and revenue growth from its portfolio of world-class assets\n· Divestment of Petra's interest in Kono for £900,000, to be settled in 4,500,000 Stellar ordinary shares (based on a valuation of £0.20 per ordinary share)\n· Petra to become a 4.45% shareholder in Stellar \n· Formation of a \"cooperation agreement\" giving Petra first option to discuss with Stellar the joint venture of any current or future project in the Stellar portfolio\n \n \nJohan Dippenaar, CEO of Petra, commented \"We are pleased to have concluded this transaction with Stellar, as Kono is no longer core to our portfolio. Petra is wholly focused on delivering substantial production and revenue growth and our key objective is to take annual production from one million carats to over three million carats. This agreement allows us to retain an interest in Kono's future upside via our new shareholding in Stellar as well being exposed to the potential of the cooperation agreement, as Stellar is developing a number of other exciting diamon...