Petra Diamonds has agreed to sell its entire shareholding in the entity that holds its interest in Williamson Diamonds Limited (WDL) to Pink Diamonds for a headline consideration of $16 million.
The $16 million consideration for the transaction shall be payable by Pink Diamonds out of WDL's distributable cash, with 20% of any distributable cash generated annually payable to Petra until this consideration is fully paid.
Completion of the transaction is expected to occur during the first quarter of the calendar year 2025, subject to receipt of customary regulatory and lender approvals.
"Since we entered into the previous transaction with Pink Diamonds, it has become increasingly clear to both Petra and Pink Diamonds that it would be preferable for WDL to come under consolidated ownership,” said Petra chief executive Richard Duffy.
“We believe that Pink Diamonds, who are affiliated to Taifa, the long-term technical services contractor at the Williamson Mine, will have the technical and financial capability to conduct operations in a responsible manner for all stakeholders.”
Taifa is a wholly Tanzanian-owned company and the country's largest mining contractor with over 30 years of related experience.
Pink Diamonds chairperson Rostam Azizi said Taifa will exercise its best endeavours to continuously improve the mine.
“We recognise the mine's viability in providing sustainable employment and a significant contribution to the greater Tanzanian economy,” he said.
“The mine has the largest kimberlite deposit in the world by surface area - with Reserves and Resources of 37.17 million carats as at 30 June 2024."
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
