After receiving approval from South Africa’s Department of Mineral Resources and Energy, the diamond sourcing and supply company will take over operations at the mine. Instead of a full payment, Stargems will provide Petra with a nominal cash consideration and assume all environmental rehabilitation liabilities and care and maintenance costs for the site. Petra had previously spent $23.1 million on these expenses in the first half of the year.
Petra CEO Richard Duffy expressed satisfaction with the sale agreement, noting Petra's commitment to a responsible exit strategy. He believes that Stargems possesses both the technical expertise and financial resources to operate the mine responsibly, thereby ensuring ongoing economic activity in the region. Additionally, the transaction will save Petra an estimated $15 million to $18 million in closure-related costs.
This acquisition follows Stargems' purchase of two other South African diamond mines, Jagersfontein Holdings and Rooipoort Holdings, from Reinet Investments in 2022. This strategic move aimed to bolster Stargems' presence across the diamond supply chain.
