Petra Diamonds withdraws interest from the KEM JV

Petra Diamonds Limited announces that it has entered into a binding Heads of Agreement with regards to the disposal of the Company’s and its black economic empowerment (BEE) partners’ 75.9% interest in the Kimberley Ekapa Mining Joint Venture (KEM JV) to the Company’s joint venture partner Ekapa Mining (Pty) Ltd for a cash consideration of ca. ZAR300 million (the Disposal).

 

KEM JV is a joint venture between Petra and its partner Ekapa Mining and incorporates the Kimberley Underground mine, extensive tailings retreatment programmes and the high volume Central Treatment Plant – all located in or around the historic diamond mining centre of Kimberley in South Africa.

 

The Disposal will be on a going concern basis, with Ekapa Mining taking on all of the Company’s financial, employee, environmental, health, safety and social obligations with regards to the KEM JV operation. The ca. ZAR300 million purchase consideration will be payable in 24 monthly instalments starting in January 2019.

 

•