London, England — MININGREVIEW.COM — 09 September 2008 – Leading international diamond mining group Petra Diamonds Limited has entered into an agreement to acquire a 75% interest in Tanzania’s renowned Williamson diamond mine for a cash consideration of US$10 million (R75 million).
Revealing this in a news release issued here, Petra explained that it would acquire the entire issued share capital of Willcroft Company Limited from Cheviot Holdings Limited – a wholly- owned subsidiary of De Beers Société Anonyme – for US$10 million (R75 million).
Currently Willcroft owns 75% of Williamson Diamonds Limited – the sole owner and operator of the Williamson mine – while the Tanzanian government owns the remaining 25%.
The release added that the total cash consideration of US$10 million (R75 million) would be funded entirely from Petra’s internal cash resources. The acquisition was scheduled for completion in mid October 2008.
Petra’s acquisition of the Williamson diamond mine marks the company’s entry into Tanzania, further diversifying the Group’s geographical spread, and 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.
Petra CEO Johan Dippenaar commented: “Williamson will be adding a further major mine to our portfolio, which already includes three major diamond mines – Cullinan, Koffiefontein and on completion, Kimberley Underground.
At 146 hectares, Williamson is the largest kimberlite pipe ever mined, having been operated continuously as an open pit mine for almost 70 years. During this time it has produced over 20 million carats, and there remains a substantial resource of some 40 million carats. The mine regularly produces large, high quality stones, and is a source of rare and extremely valuable fancy pink diamonds.