Last checked at 6 Jun 2008 07:00
6 June 2008 AIM: PDL
Petra Diamonds Limited ("Petra")
Cullinan Acquisition Update - Ministerial consent granted
Petra, the international diamond mining group, today announces that Ministerial consent has been granted for the cession and transfer of the Cullinan new order mining right to Cullinan Diamond Mine (Pty) Limited ("CDM") from De Beers Consolidated Mines Limited ("De Beers"). CDM is wholly owned by the members of the Petra Diamonds Cullinan Consortium ("PDCC"), and represents the interests of PDCC in Cullinan.
The timetable for completion of the Cullinan acquisition remains on track for July 2008, when Petra (as a member of PDCC) will take over the operation of the mine from De Beers.
On 22 November 2007 PDCC entered into an agreement with De Beers to acquire Cullinan. A condition of the acquisition was that Ministerial consent under Section 11 of The Mineral and Petroleum Resources Development Act for the cession of the Cullinan new order mining right be granted. The completion of the acquisition is now conditional upon the registration in the Mineral and Petroleum Titles Registration Office of the transfer by De Beers of the Cullinan new order mining right into the name of CDM.
When this condition has been met and therefore the acquisition completed, Petra will publish a Cullinan resource statement in accordance with the AIM Guidance for Mining Companies.
Ends
For further information, please contact:
| Cathy Malins | Telephone: +44 (0) 20 7493 7671 |
| Petra Diamonds, London |
| Julian Walker / Harriet Pask | Telephone: +44 (0) 20 7357 9477 |
| Hogarth Partnership Limited | pdl@hogarthpr.co.uk |
| Adrian Hadden | Telephone: +44 (0) 20 7523 8000 |
| Collins Stewart, London |
Notes to Editors:
About Petra Diamonds
Petra Diamonds is an international diamond mining group with a balanced portfolio combining major producing mines, world class exploration assets and a cutting and polishing business.
With operations in South Africa, Angola, Botswana and Sierra Leone, Petra's objective is to continue to grow production, developing its stature as a leading diamond producer in all of the countries in which it operates.
In South Africa, Petra has four producing mines and recently reached agreements to acquire two further mines from De Beers (Cullinan and Kimberley Underground). The group is on track to increase its annual production from 180,000 carats in the year to June 2007 to over 400,000 carats in the year to June 2009 and is targeting annual production of over 1 million carats thereafter.
Complementing the Group's production is an exploration and development portfolio spread across some of the world's most prospective diamond fields. In Angola, Petra is developing the world class Alto Cuilo and neighbouring Luangue projects. In Botswana, Petra has established the largest diamond exploration landholding in the country, where it believes that modern exploration techniques will hold the key to the discovery of new, major kimberlites. In Sierra Leone, Petra is developing a fissure operation with its JV partner Stellar Diamonds and test work to date indicates the potential for economic operations.
The Petra group now employs some 3,000 people and over the last 10 years the Company has developed a range of social initiatives which continue to make a meaningful impact upon the lives of employees and surrounding communities. Petra's focus remains upon sustainable development, via educational programmes and skills transfer, to ensure a broad based approach with a lasting legacy, and all operations are carried out with the highest regard for the environment according to best practice.
Petra will only commit to working in countries which are members of the Kimberley Process and shareholders can remain assured that Petra's diamonds will only ever be 100% conflict free.
For further information, please visit www.petradiamonds.com.