Gem Diamonds sells its Ghaghoo Mine to Pro Civil for $5.4 million
Gem Diamonds Limited announces that it has entered into a binding agreement with Pro Civil (Pty) Ltd (‘Pro Civil’) for the sale of 100% of the share capital of Gem Diamonds Botswana Proprietary Limited (‘GDB’). Pro Civil is a company registered in Botswana.
GDB’s primary asset is the Ghaghoo diamond mine in Botswana which has been on care and maintenance since March 2017, and which is wholly owned by GDB. GDB reported for the period ended 31 December 2018, loss before tax of BPW 49.5 million (US$ 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.