Petra Diamonds Limited executed a non-binding MoU to sell 50% (less one share) of its shareholding in Williamson Diamonds Limited (WDL), along with a pro rata portion of shareholder loans owed by WDL, to Caspian Limited or its nominee for a total of $15 million. Caspian is the long-term technical services contractor at the Williamson Mine in Tanzania.
WDL is the operator of the Williamson Mine. WDL is currently 25% owned by the Government of Tanzania and 75% owned by Petra, with Petra having acquired its majority interest in WDL in 2009. However, further to the Framework Agreement with the Tanzania Government announced on 13th December 2021, which provides for a capital restructuring of the WDL entity, Petra’s effective interest is due to decrease to 63% and the Government of Tanzania’s to increase to 37%. Upon completion of the transactions contemplated by the MoU and upon the capital restructuring in the aforementioned Framework Agreement becoming effective, Petra and Caspian will each indirectly hold a 31.5% stake in WDL but with Petra retaining a controlling interest in WDL.
Richard Duffy, Chief Executive of Petra, commented: “We are very pleased to be partnering with Caspian, who bring considerable local and mining experience. This will assist us in optimising the orebody for the benefit of all of Williamson’s stakeholders, both in the short term as we continue to ramp-up operations and in the longer term to fully realise the mine’s potential in an improved economic environment.”
Rostam Azizi, Chairman of Caspian, commented: “We have been contracting at the Williamson Mine, the largest kimberlite diamond mine in the world by surface area for close to 20 years and as such we are particularly pleased to enter into this next phase of our involvement at the mine as co-owners. We recognise its viability in providing sustainable employment and a significant contribution to the Tanzanian economy.”