Petra Diamonds Regulatory News (PDL)

21 Dec 2006 07:01

Petra Diamonds Ld21 December 2006 Petra Diamonds Limited Koffiefontein - Mining Licence Granted Petra Diamonds Limited ("Petra" or "the Company"), the AIM-quoted and ASX-listeddiamond group, announces that further to the announcement of 18 December 2006,the South African Department of Minerals and Energy ("DME") has now granted themining right to its wholly owned subsidiary, Blue Diamond Mines (Pty) Limited ("BDM") in respect of the Koffiefontein diamond mine ("Koffiefontein"), SouthAfrica. BDM has concluded a joint venture agreement ("JV Agreement") with itsKoffiefontein Black Economic Empowerment ("BEE") partners, and the joint venturewill use the assets acquired from De Beers to operate Koffiefontein. The termsof the JV Agreement are that BDM's interest in the JV is 70%, with the BEEpartners holding the remaining 30%. Adonis Pouroulis, Petra's CEO commented "The acquisition of the Koffiefonteinmine is a key addition to Petra's asset base and is in line with our strategy ofincreasing the group's production profile. Petra would like to thank both theSouth African Department of Minerals and Energy and De Beers for their supportin returning the mine to production - the mine is an important contributor tothe local community and recommencing operations at Koffiefontein is a highlypositive development for all stakeholders." Completion of the JV Agreement is conditional upon the following key terms: (i) the DME issuing a closure certificate to De Beers inrespect of Koffiefontein; and (ii) the DME consenting to the cession, transfer and delegationof the rehabilitation obligations and liabilities in respect of Koffiefonteinfrom De Beers to BDM; and (iii) the return to De Beers by the DME of all amounts andfinancial guarantees previously deposited by De Beers with the DME as part of DeBeers' rehabilitation obligations in respect of Koffiefontein; and (iv) the approval by the South African Competition Commission. When the terms above have all been met, which is expected to be in early 2007,Petra will commence production from Koffiefontein. A resource statement for Koffiefontein, in compliance with the AIM Guidance forMining companies is shown below: SUMMARY OF RESERVES AND RESOURCES BY STATUSMinerals & OreCategory Gross (100%) Net attributable (70%) Operator Tonnes Grade Contained Tonnes Grade Contained (millions) (cpht) Diamonds (millions) (cpht) Diamonds (millions) (millions)Ore/Mineralreserves perassetProved - - - - - - Koffiefontein JVProbable 21.139 4.32 0.914 14.797 4.32 0.640 Koffiefontein JVSub-total 21.139 4.32 0.914 14.797 4.32 0.640Mineralresources perassetMeasured - - - - - - Koffiefontein Mine JVIndicated 2.483 7.82 0.194 1.738 7.82 0.136 Koffiefontein JVInferred 54.168 4.20 2.276 37.918 4.20 1.593 Koffiefontein JVSub-total 56.651 4.36 2.470 39.656 4.36 1.729Total 77.790 4.35 3.384 54.453 4.35 2.369Source: J M Davidson, regarded as Qualified Person for the purposes of the AIM Guidance Note on Mining, Oil and Gas CompaniesNote: "Operator" is name of the company that operates the asset; "Gross" are 100% of the reserves and/or resources attributable to the licence whilst "Net attributable" are those attributable to the AIM company; "cpht" is carats per one hundred tonnes Ends Notes 1. The information in this update that relates to Exploration Results, MineralResources or Ore Reserves is based on information compiled by Jim Davidson, Pr.Sci Nat (reg No 400031/06), who is a Member of the Geological Society of SouthAfrica, a 'Recognised Overseas Professional Organisation' ('ROPO'), included ina list promulgated by the ASX from time to time. Jim Davidson is a full-timeemployee of the Company and has sufficient experience which is relevant to thestyle of mineralisation and type of deposit under consideration and to theactivity which he is undertaking to qualify as a Competent Person as defined inthe 2004 Edition of the 'Australasian Code for Reporting of Exploration Results,Mineral Resources and Ore Reserves'. Jim Davidson has given his written consentto the inclusion in this announcement of the matters based on his information inthe form and context in which it appears. Jim Davidson is the Qualified Personfor the purposes of the AIM Guidance Note on Mining, Oil and Gas Companies datedMarch 2006. 2. It should be noted that the potential quantity in this report is conceptualin nature, there has been insufficient exploration to define a Mineral Resourceand it is uncertain if further exploration will result in the determination of aMineral Resource. For further information, please contact:Cathy Malins / Annabel Leather Telephone: +44 (0) 20 7851 7480Parkgreen Communications, London This information is provided by RNS The company news service from the London Stock Exchange