Petra to Sell Remaining Stake in Williamson Mine
January 23, 25
(IDEX Online) - Petra is to sell its remaining half share in the Williamson diamond mine, in Tanzania, in response to what it called "short-term liquidity challenges".
In May 2023 the UK-based miner sold half its interest in the mine to Taifa, the country's largest mining contractor, for $15m saying the move would place the mine on "a stronger basis for the future".
But it has since concluded that because of a prevailing weak market, and the need for further capital investment in the mine, it would be prudent to sell the remainder.
In a statement yesterday (22 January) the company announced plans to sell its entire shareholding to Pink Diamonds, an affiliate of Tafia, for $16m.
Petra said any net proceeds would be used for general corporate purposes.
"Since we entered into the previous transaction with Pink Diamonds, it has become increasingly clear to both Petra and Pink Diamonds that it would be preferable for WDL (Williamson Diamonds Limited) to come under consolidated ownership," said Richard Duffy, Petra's chief executive.
"We believe that Pink Diamonds, who are affiliated to Taifa, the long-term technical services contractor at the Williamson Mine, will have the technical and financial capability to conduct operations in a responsible manner for all stakeholders."
Operations at Williamson resumed in July 2023 after the breach of a tailings dam seven months earlier causing significant environmental damage.
Pic of Williamson mine courtesy Petra.