23 Sep 2008 07:00
RNS Number : 0091E
Gem Diamonds Limited
23 September 2008
23 September 2008
GEM DIAMONDS LIMITED
("Gem Diamonds" or the "Company")
ACQUISITION OF CALIBRATED DIAMONDS
HIGHLIGHTS
Acquisition of Calibrated Diamonds for US$5.9 million (ZAR47.0 million)
Provides ability to cut and polish top quality diamonds to high and consistent standard
Acquisition compliments diamond beneficiation strategy
Allows for greater margin capture post the mine gate on small and medium size top quality diamonds
Complements existing diamond beneficiation technology
Gem Diamonds (LSE:GEMD), the FTSE250 diamond company, is pleased to announce the acquisition of Calibrated Diamonds Investment Holdings (Pty) Limited (“Calibrated Diamonds”), together with its state of the art diamond processing assets, intellectual property and management expertise from Petra Diamonds Limited (“Petra”) for a total cash investment of US$5.9 million (ZAR 47.0 million) ( the “Transaction”).
Calibrated Diamonds makes use of a proprietary high technology process and computer software to manufacture perfectly symmetrical polished diamonds to a high degree of accuracy that require minimal manual polishing. The process maximizes the polished yield and produces symmetrical polished diamonds to a very high and consistent standard.
The Company will establish a technically advanced facility in Mauritius which will use the Calibrated technology to beneficiate a portion of Gem Diamonds’ top quality production.
As part of the Transaction, Gem Diamonds has agreed to provide Petra with access to its beneficiation technologies to cut and polish their high value diamonds. This arrangement is subject to agreed commercial terms and available capacity after processing Gem Diamonds’ own rough diamonds.
Gem Diamonds’ beneficiation strategy was formalised after the Company undertook several successful diamond polishing and tender trials over the last twelve months on diamonds from its Letšeng and Ellendale mines, using both technologies.
Gem Diamonds recently announced the successful recruitment of the Antwerp-based executive team from Matrix Diamond Technology who will be establishing the Company’s cutting and polishing facility in Dubai. This facility will beneficiate a portion of Gem Diamonds’ largest, top quality rough diamond production using sophisticated rough diamond mapping and analysing technology.
The addition of Calibrated Diamonds’ advanced proprietary laser cutting technology and management expertise, will compliment this sophisticated rough diamond mapping and analyzing technology and merged technologies could ultimately be developed into a single end to end diamond beneficiation technology solution.
Gem Diamonds expects both these facilities to be in operation in Dubai and Mauritius within the first half of 2009
ENDS
For further information:
Gem Diamonds LimitedRichard Chetwode
Tel: +44 203 043 0290
Pelham PR
Candice Sgroi
Tel: +44 207 743 6376
About Gem Diamonds:
Gem Diamonds Limited (LSE: GEMD) is a global diamond company that is pursuing an accelerated growth strategy through targeted acquisitions and the development of existing assets.
The Company's portfolio comprises producing kimberlite, lamproite and alluvial mines, development projects, exploration assets as well as a diamond beneficiation centre. Operations are situated in Angola, Australia, Botswana, the Central African Republic, the Democratic Republic of Congo, Dubai, Lesotho and Indonesia.
Gem Diamonds has a specific focus towards higher value diamonds, a segment of the market expected to deliver superior long term returns. The Company produces some of the world's most remarkable white diamonds from its Letšeng mine and rare fancy yellow diamonds from its Ellendale mine and an array of coloured diamonds from its Cempaka mine.
Established in July 2005, Gem Diamonds listed on the main board of the London Stock Exchange in February 2007 raising US$635 million and it had US$144 million of cash on its balance sheet at the end of June 2008.
For further information about Gem Diamonds visit www.gemdiamonds.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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