Petra and BHP Sign Deal on Angola Project
February 22, 04
South Africa’s Petra Diamonds has signed a strategic alliance with BHP Billiton World Exploration regarding its Alto Cuilo diamond project in northeastern Angola.
Petra, along with its Angolan partners Empresa Nacional de Diamantes de Angola, Endiama and Organizacoes Moyoweno, has established the presence of diamondiferous kimberlites on the Alto Cuilo concession.
Under the terms of the agreement, BHP Billiton and Petra will enter into a six-month period of exclusivity in which exploration will proceed and the parties will negotiate a structure and investment schedule for BHP Billiton's full participation in the project.
Should these negotiations be successful, Petra and BHP Billiton will enter into a formal joint venture agreement.
In the interim, BHP Billiton will pay $1.5 million that would become ordinary shares upon the conclusion of a formal joint venture agreement that would be based on Petra's share price on the date of conversion.
In the event that a formal joint venture agreement is not signed, the money will be returned to BHP Billiton.