Petra gets approval to sell Koffiefontein mine holding company

7th Oct 2024 10:10

(Sharecast News) - Petra Diamonds has secured unconditional consent under South Africa's Mineral and Petroleum Resources Development Act for the sale of its entire issued share capital of Blue Diamond Mines to Koffiefontein Holdings, an affiliate of the Stargems Group, it announced on Monday.

The London-listed firm said the 'Section 11' approval meant it anticipated completing the transaction and handing over the Koffiefontein mine by the end of October.

It said the sale would enable it to avoid $15m to $18m in closure-related costs, which had been included in its balance sheet provisions as of 30 June.

"Since taking the difficult decision to put the Koffiefontein mine on care and maintenance, and planning for closure of the mine, Petra has remained committed to exploring a responsible exit of the asset," said chief executive officer Richard Duffy.

"The grant of the consent by the DMPR will allow the Koffiefontein mine to continue with economic activity under new ownership.

"We believe this is the best possible outcome for all stakeholders involved."

At 0925 BST, shares in Petra Diamonds were up 0.62% in London at 32.6p.

Reporting by Josh White for Sharecast.com.