Gem Diamonds Limited has entered into a binding share sale agreement with Okwa Diamonds (Pty) Ltd for the sale of the Ghaghoo diamond mine in Botswana for $4 million.
Ghaghoo, which is wholly owned by Gem Diamonds Botswana Proprietary Limited (GDB), has been on care and maintenance since March 2017. As of 31st December 2020, the gross assets of GDB were $3.5 million and the loss attributable to GDB for the 12-month period ended 31st December 2020 was $3.3 million. The purchaser will take over all assets and assume all liabilities of GDB. Clifford Elphick, Chief Executive Officer of Gem Diamonds, said: “This sale is in line with our strategic objective to dispose of non-core assets. Gem Diamonds remains focused on optimising production and efficiency at the Letšeng mine in Lesotho. On behalf of Gem, we wish the Okwa Diamonds team well for the future, and I would also like to thank the Government of Botswana for its assistance during the sale process.”