[miningmx.com] — Diamond mining junior Petra Diamonds, the AIM-listed diamond producer with operations in South Africa, on Tuesday announced that it was divesting of the Kono Diamond Project in Sierra Leone.
“Petra 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 company said in a statement.
“The Kono kimberlite fissure project, while 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,” it added.
The company has reached an agreement with diamond production and development company Stellar Diamonds to exchange its interest in the Kono Diamond Project for shares in Stellar, the project’s joint venture partner.
Kono 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.
“We are pleased to have concluded this transaction with Stellar, as Kono is no
longer core to our portfolio,” said Petra CEO Johan Dippenaar.
“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 diamond projects in West Africa,” Dippenaar said.