[miningmx.com] — Diamond mining junior Petra Diamonds, the AIM-listed diamond producer with operations in South Africa, on Monday announced the completion of the sale of its Kono Diamond Project in Sierra Leone.
This follows an agreement reached earlier this month 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.
Completion of the transaction was subject to, among other things, the final
signature of a share purchase agreement and issue of the Stellar shares to Petra.
Both of these conditions have now been met, reported Petra.
Stellar has issued to Petra 4.5 million ordinary shares, based on a valuation of
£0.20 per ordinary share, settling the transaction consideration of £900,000.
Petra said its decision to divest of the project was in line with its focus on
delivering production and revenue growth from its portfolio of kimberlite mines.
The company’s core objective is to grow annual production from one million to
over three million carats.
“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,” Petra said earlier this month.
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.