Gem Diamonds Limited Sale of Gem Diamonds Botswana Proprietary Limited (7991C)
June 20 2019 - 2:00AM
UK Regulatory
TIDMGEMD
RNS Number : 7991C
Gem Diamonds Limited
20 June 2019
20 June 2019
GEM DIAMONDS LIMITED
("Gem Diamonds" or "the Company")
Sale of Gem Diamonds Botswana Proprietary Limited
Gem Diamonds Limited (LSE: GEMD) announces that it has entered
into a binding agreement with Pro Civil (Pty) Ltd ('Pro Civil') for
the sale of 100% of the share capital of Gem Diamonds Botswana
Proprietary Limited ('GDB'). Pro Civil is a company registered in
Botswana.
GDB's primary asset is the Ghaghoo diamond mine in Botswana
which has been on care and maintenance since March 2017, and which
is wholly owned by GDB. GDB reported for the period ended 31
December 2018, loss before tax of BPW 49.5 million (US$ 4.9
million) and, as at the same date, had gross assets of BWP 42.3
million (US$ 3.9 million).
Under the share sale agreement, Pro Civil will make a once-off
upfront payment of US$5.4m for the share capital of GDB. Gem
Diamonds will use the sale proceeds for general corporate purposes.
In addition, Pro Civil will assume the environmental liability
currently associated with GDB.
Subject to regulatory approvals within Botswana, the transaction
is expected to be completed in the third quarter of 2019. The
Government of Botswana has been consulted throughout the process
and is fully conversant with the relevant details of the
transaction.
Clifford Elphick, Chief Executive Officer of Gem Diamonds,
commented:
"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 Letšeng 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."
The Gem Diamonds Limited LEI number is 213800RC2PGGMZQG8L67
For further information:
Gem Diamonds
Susan Wallace, Company Secretarial department
ir@gemdiamonds.com
Celicourt Communications
Mark Antelme / Jimmy Lea
Tel: +44 (0) 207 520 9261
About Gem Diamonds:
Gem Diamonds is a leading global diamond producer of high value
diamonds. The Company owns 70% of the Letšeng mine in Lesotho. The
Letšeng mine is famous for the production of large, top colour,
exceptional white diamonds, making it the highest dollar per carat
kimberlite diamond mine in the world. www.gemdiamonds.com
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END
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