Petra Diamonds, one of the largest independent producers of diamonds in Africa, plans to sell its exploration assets in Botswana to Botswana Diamonds for $300,000 and a 5% royalty on future revenue.
Although the purchase price will be payable in two equal instalments on or before 31st August 2021 and 31st August 2022, Botswana Diamonds also has the option to buy out the royalty for $2 million in cash.
Petra’s subsidiary Sekaka Diamonds Exploration (Pty) Limited, which Botswana Diamonds would take over, holds three prospecting licences including the KX36 project, which has an indicated resource of 17.9 million tonnes at 35 carats per hundred tonnes.
However, the sale is still subject to approval by the Botswana Competition Commission, ministerial consent in Botswana, and approval from Petra’s lenders and debt holders.
Petra Diamonds is a diamond mining group with its headquarters in Jersey. It has interests in eight producing mines in South Africa and Tanzania and an exploration program in Botswana.
Petra Diamonds’ focus has shifted from exploration to production and has become one of the largest independent producers of diamonds in Africa. It is also listed on the LSE (London Stock Exchange).