Finsch takeover sees ministerial consent granted

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Petra deal closure imminent with only registration to complete.

Petra Diamonds has announced that ministerial consent has been granted for its takeover of the Finsch diamond mine in South Africa from De Beers.

The consent, outlined in the terms of Section 11 of the Mineral and Petroleum Resources Development Act, 2002 (“MPRDA”) has been granted for the transfer of the new order mining right for the Finsch mine from De Beers Consolidated Mines Limited to Afropean Diamonds Limited, which represents Petra.

Johan Dippenaar, CEO of Petra, said: “We are delighted to have received the Section 11 ministerial consent. The acquisition process is now in the very final stages and we expect it to complete in the near future.

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“Petra will then take over management of this major producing diamond mine which, after an initial three month bedding down period, is expected to add approximately 125,000 carats per month to Petra’s production,” he added.

The original takeover agreement was announced on January 21. A key condition of the acquisition was that ministerial consent under Section 11 of the MPRDA for the cession of the Finsch new order mining right be granted.

Now that the Section 11 consent has been granted the only remaining material condition is the registration of the transfer of the Finsch new order mining right in the South African Mineral and Petroleum Titles Registration Office, which is expected to take place in the near future.

When this last condition is met and the acquisition completed, Petra will publish a Finsch resource statement in accordance with the AIM Guidance for Mining Companies.

 

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