Petra Diamonds announced last week that Taifa Mining and Civils Limited, will be buying 50 per cent less one share of the Petra’s shareholding in Williamson Diamonds Limited (WDL). Tiafa Mining has been serving as the long-term technical services contractor at the Williamson Mine for over 20 years in coordination with Petra but have now stepped up their role as an equity stakeholder in the project.
Petra also announced it has entered the phase of definitive transaction documents which also give effect to a prorated portion of shareholder loans owed by WDL for a total consideration of 15million US dollars.
“Our partnership with Taifa places Williamson on a stronger basis for the future. This new structure will reduce our equity interest in WDL, limiting our exposure in line with our stated objectives, while retaining control and maintaining a share of the upside,” Mr Richard Duffy, Petra’s Chief Executive stated in the statement issued in Dar es Salaam, last week.
He said the Williamson mine holds a unique place in the sector with its significant resource base and ability to produce high quality pink diamonds. The mine has the largest kimberlite deposit in the world by surface area – with Reserves and Resources of 37.7mcts as of June 2022.
Pink Diamonds’ payment of the US$15m purchase price will be satisfied through payments owed by WDL to Taifa for past technical services, dependent on WDL’s ability to meet these obligations. It is expected that these payments will be received by Petra in instalments over the next five years.
Source: Petra Diamonds
Photo Credit: Petra Diamonds