Gem Diamonds Limited
10 September 2007
10 September, 2007
GEM DIAMONDS LIMITED
('Gem Diamonds' or the 'Company')
SALE OF WOODLARK GOLD PROJECT
Gem Diamonds Limited (LSE: GEMD) ('Gem Diamonds') is pleased to announce it has
sold the Woodlark Gold Project for US$26.5 million to a company jointly owned by
private equity fund Pacific Road Resources and resources financing and
investment business RMB Resources Limited, a subsidiary of Rand Merchant Bank.
The purchase price will be settled in cash and the effective date is 1 July
2007.
The Woodlark Gold Project formed part of BDI Mining, which was acquired by Gem
Diamonds in June 2007 for US$80.1 million. The divestment of the gold asset
reduces the effective price of the remaining asset, the Cempaka alluvial diamond
mine in Indonesia, to US$53.6 million.
Work at Cempaka is ongoing where the decision has been taken to invest US$16
million to improve mining efficiencies, infrastructure and plant and allow for
an increased level of production to 80,000 bcm per month.
Gem Diamonds CEO Clifford Elphick commented:
'The sale of Woodlark was anticipated at the time of the acquisition of BDI
Mining and the price achieved is pleasing. This disposal allows the new
management of BDI Mining to focus exclusively on diamond production at Cempaka,
in line with Gem Diamonds' strategy of becoming one of the world's leading
diamond companies'.
For further information:
Gem Diamond Technical Services
Clifford Elphick
Angela Parr
Tel: +27 83 578 3885
Pelham PR
Candice Sgroi
Tel: +44 207 743 6376
About Gem Diamonds
Gem Diamonds is a diamond mining company with a balanced portfolio of a
producing kimberlite mine, two producing alluvial mines, development projects
and long-term prospects. Established in July 2005, Gem Diamonds is pursuing an
accelerated growth strategy and aims to become one of the world's leading
diamond companies. Gem Diamonds currently has one producing kimberlite mine, Let
seng, in Lesotho, two producing alluvial mines - Cempaka in Indonesia and
Mbelenge in the Democratic Republic of Congo (DRC), a kimberlite development
project in Botswana, three development projects in the DRC, one in the Central
African Republic and an option to develop the Chiri kimberlite concession in
Angola.
The Company recently made an offer to Kimberley Diamond Company's shareholders
to acquire their shares in this company, which owns the Ellendale Mine in north
western Australia.
Gem Diamonds has a specific focus towards higher value diamonds, a segment of
the market that its management believes will deliver superior long term returns.
In February 2007, Gem Diamonds listed on the London Stock Exchange and raised
US$600 million (net of expenses) to fund development of its existing assets as
well as to pursue acquisitive growth opportunities. Gem Diamonds trades under
the code GEMD. At the time of this announcement the market capitalisation of the
company is approximately US$1,2 billion.
For further information about Gem Diamonds visit www.gemdiamonds.com.
This information is provided by RNS
The company news service from the London Stock Exchange