Gem Diamonds To Sell Ghagoo Diamond Mine For USD5 Million

(Alliance News) - Gem Diamonds Ltd said Thursday it has agreed to sell Gem Diamonds Botswana Pty ...

Alliance News 20 June, 2019 | 11:45AM
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(Alliance News) - Gem Diamonds Ltd said Thursday it has agreed to sell Gem Diamonds Botswana Pty Ltd, which holds the Ghaghoo diamond mine in Botswana, to local company Pro Civil Pty Ltd.

Under the agreement, Pro Civil will make a one-off payment of USD5.4 million to Gem Diamonds, who will use the sale proceeds from general corporate purposes.

The Ghaghoo mine has been on care and maintenance since March 2017, and Gem Diamonds Botswana reported a pretax loss of BWP49.5 million, or USD4.9 million for 2018, with gross assets of BWP42.3 million.

The acquisition is subject to regulatory approvals in Botswana, and is expected to be completed in the third quarter of 2019.

"This sale is in line with our strategic objective to dispose of non-core assets. Gem Diamonds remains focused on optimising production and efficiency at the Letseng mine in Lesotho. On behalf of Gem, we wish the Pro Civil team well for the future, and I would also like to thank the Government of Botswana for its assistance during the sale process," said Chief Executive Officer Clifford Elphick.

Shares in Gem Diamonds were up 0.5% at 78.00 pence on Thursday.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Gem Diamonds Ltd 32.10 GBX 0.31 -

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