Petra Diamonds selling non-core South African mines
London-listed Petra Diamonds (LON:PDL) shares were on the rise Monday after the company revealed Friday it had started selling three of its non-core South African mines.
The company, which has seven producing mines in South Africa, one in Tanzania, and an exploration program underway in Botswana, said it would consider bids for Helam, Sedibeng and Star – what it calls “The Fissure Mines.” To manage the sale process the company said it has appointed South Africa-based corporate finance adviser QuestCo.
According to Petra, the operations are a rare opportunity to purchase high-quality, sustainable kimberlite mines, as they had a proven track record of production for more than 50 years and long life-of-mine with five-million carats of resources.
The mines have real potential to deliver strong returns under the ownership of an operator to whom they are core assets,” Petra said in a statement.
Helam is located 70 km west of Rustenburg in the North West province, Sedibeng is located 80 km northwest of Kimberley in the Northern Cape, and Star is located 4 km south of Welkom in the Free State.
Petra is expected to announce its preliminary results for the 12 months ended June 30, in two weeks (Sep. 24).