REG - Petra Diamonds Ltd - Potential Sale of Koffiefontein

Petra DiamondsAnnouncement

13/12/2023 11:00

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RNS Number : 6567W  Petra Diamonds Limited  13 December 2023

 13 December 2023  LSE: PDL

 

Petra Diamonds Limited

("Petra" or "the Company")

 

Koffiefontein Update

 

Non-Binding Term Sheet for the Potential Sale of Koffiefontein

 

 

Petra is pleased to announce that the Company has entered into a non-binding
term sheet on an exclusive basis with an interested party for the potential
sale of the Koffiefontein Diamond Mine (Koffiefontein) in South Africa.

 

Petra has been exploring a responsible exit from Koffiefontein since April
2022, with the operation being placed on care and maintenance in November
2022.  The Company continues to transition Koffiefontein towards closure,
with a closure application expected to be submitted to the Department of
Mineral Resources and Energy (DMRE) in February 2024. This application will
only be withdrawn upon completion of the potential sale. If the parties are
unable to agree definitive agreements, then Petra intends to proceed with its
decommissioning, rehabilitation and closure programme, in line with the
closure plan that is planned to be submitted and pending DMRE approval.

 

Any sale would be subject to obtaining the consent of the DMRE in accordance
with section 11 of South Africa's Mineral and Petroleum Resources Development
Act.  Petra is committed to ensuring that any future owner of Koffiefontein
has the technical and financial capability to conduct operations in a
responsible manner for all stakeholders.

 

The Company will provide further updates on the progress of the potential sale
in due course.

 

Richard Duffy, Chief Executive Officer of Petra, commented:

 

"We are mindful of our obligations towards our stakeholders at Koffiefontein
when considering a potential sale, which provides an opportunity to extend the
economic life of the mine beyond the responsible closure process currently
underway.

 

"We will continue to work closely with the DMRE, community representatives and
other key stakeholders to find the best way forward at Koffiefontein and
remain dedicated to our environmental and social responsibilities, whether
through the decommissioning and closure process, or through a potential sale."

 

For further information, please contact:

 

Investor Relations, London                  Telephone: +44 20
7494
8203

Patrick Pittaway
 
investorrelations@petradiamonds.com
(mailto:investorrelations@petradiamonds.com)

Julia Stone

Kelsey Traynor

 

Financial PR (Camarco)

Gordon
Poole
Telephone: +44 20 3757 4980

Owen
Roberts
petradiamonds@camarco.co.uk (mailto:petradiamonds@camarco.co.uk)

Elfie Kent

 

 

About Petra Diamonds Limited

Petra Diamonds is a leading independent diamond mining group and a supplier of
gem quality rough diamonds to the international market. The Company's
portfolio incorporates interests in three underground mines in South Africa
(Finsch, Cullinan Mine and Koffiefontein) and one open pit mine in Tanzania
(Williamson). The Koffiefontein mine is currently on care and maintenance in
preparation for sale or closure.

 

 

Petra's strategy is to focus on value rather than volume production by
optimising recoveries from its high-quality asset base in order to maximise
their efficiency and profitability. The Group has a significant resource base
which supports the potential for long-life operations.

 

Petra strives to conduct all operations according to the highest ethical
standards and only operates in countries which are members of the Kimberley
Process. The Company aims to generate tangible value for each of its
stakeholders, thereby contributing to the socio-economic development of its
host countries and supporting long-term sustainable operations to the benefit
of its employees, partners and communities.

 

Petra is quoted with a premium listing on the Main Market of the London Stock
Exchange under the ticker 'PDL'. The Company's loan notes due in 2026 are
listed on the Irish Stock Exchange and admitted to trading on the Global
Exchange Market. For more information, visit www.petradiamonds.com.

 

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