Gem Diamonds to sell its Ghaghoo diamond mine in Botswana


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(Kitco News) – Gem Diamonds (LSE: GEMD) announced on Monday that it has entered into a binding share sale agreement with Okwa Diamonds for the sale of 100% of the share capital of Gem Diamonds Botswana (GDB), owner of Ghaghoo. diamond mine.

Okwa Diamonds, a Botswana registered SPV company, is owned by Vast Resources, an AIM listed mining and resource development company, and Botswana Diamonds, a listed diamond exploration and development company. at AIM and the Botswana Stock Exchange.

The company noted that the Ghaghoo diamond mine in Botswana had been under maintenance since March 2017. As of December 31, 2020, GDB’s gross assets were US $ 3.5 million and the loss attributable to GDB for the period. 12-month period ended December 31. 2020 was $ 3.3 million. The acquirer will take over all assets and assume all liabilities of GDB, the company added.

Under the terms of the share sale agreement, the purchaser will pay total consideration of US $ 4 million, payable in two installments of US $ 2 million each, the first of which is payable five days after the date on which the last condition precedent has been fulfilled or lifted. . The second payment is payable no later than December 23, 2021, provided the first payment has been made before that date.

CEO Clifford Elphick commented: “This sale is in line with our strategic objective to dispose of non-core assets. Gem Diamonds remains focused on optimizing production and efficiency at the LetÅ¡eng mine in Lesotho. On behalf of Gem, we wish the Okwa Diamonds team well for the future, and I would also like to thank the Government of Botswana for their assistance during the sale process. “

Gem Diamonds is one of the world’s leading producers of high value diamonds. The company owns 70% of the LetÅ¡eng mine in Lesotho. The LetÅ¡eng Mine is famous for producing exceptional large white diamonds of superior color, making it the highest dollar kimberlite diamond mine in the world.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not a solicitation to effect an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.


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