Petra acquires majority of Williamson diamond mine

first_imgPetra Diamonds has entered into an agreement to acquire a 75% interest in Tanzania’s renowned Williamson diamond mine for a cash consideration of $10 million. At 146 ha, Williamson is the largest kimberlite pipe ever to be mined, and has been operated continuously as an open pit for almost 70 years.  During this time it has produced over 20 Mct, and there remains a substantial resource of some 40 Mct, reportedly. The mine regularly produces large, high quality stones and is a source of rare and extremely valuable fancy pink diamonds. Petra will acquire the entire issued share capital of Willcroft Co from Cheviot Holdings, a wholly owned subsidiary of De Beers S.A. Willcroft owns 75% of Williamson Diamonds Ltd (WDL), the sole owner and operator of the Williamson mine, while the Government of Tanzania owns the remaining 25%. Petra says the total cash consideration of $10 million will be funded entirely from internal cash resources. The acquisition is scheduled for completion in mid October 2008.The acquisition marks Petra’s entry into Tanzania, further diversifying the group’s geographical spread. The acquisition is in line with the group’s aim of creating a diamond production portfolio of global significance, complemented by a substantial and valuable resource base.Johan Dippenaar, Petra’s Chief Executive Officer, commented: “Petra already owns three major diamond mines, Cullinan, Koffiefontein and on completion, Kimberley Underground. Williamson will add a further major mine to our portfolio, with the potential to deliver considerable value to our shareholders. This acquisition also marks Petra’s entry into Tanzania, further diversifying the Group’s geographical spread across Africa. We thank the Government of the United Republic of Tanzania for their support in completing this transaction and we look forward to working with the Government as our partner in taking the mine forward.”last_img

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