Modern Mining July 2019

MINING News

Gem sells its Ghaghoo mine for US$5,4 million

of Botswana for its assistance during the sale process.” The Ghaghoo mine is situated near the south-eastern border of the Central Kalahari Game Reserve (CKGR). The project was acquired by Gem in May 2007 and the official opening of the mine took place in September 2014. Ghaghoo is Botswana’s first underground diamond mine with access to the kimberlite – buried under 70 m of Kalahari sand – being provided by a unique decline shaft which was con- structed using an Open Face Tunnelling Shield. The mine was placed on care and maintenance by Gem in March 2017 as a result of the weak state of the diamond market for the category of diamonds produced by Ghaghoo. 

addition, Pro Civil will assume the environ- mental liability currently associated with GDB. Subject to regulatory approvals within Botswana, the transaction is expected to be completed in the third quarter of 2019. The Government of Botswana has been consulted throughout the process and is fully conversant with the relevant details of the transaction. Clifford Elphick, Chief Executive Officer of Gem Diamonds, commented: “This sale is in line with our strategic objective to dis- pose of non-core assets. Gem Diamonds remains focused on optimising produc- tion and efficiency at the Letšeng mine in Lesotho. On behalf of Gem, we wish the Pro Civil team well for the future, and I would also like to thank the Government

LSE-listed Gem Diamonds has announced that it has entered into a binding agree- ment with Pro Civil (Pty) Ltd for the sale of 100 % of the share capital of Gem Diamonds Botswana Proprietary Limited (GDB). Pro Civil is a company registered in Botswana. GDB’s primary asset is the Ghaghoo dia- mond mine in Botswana, which it wholly owns. GDB reported a loss before tax of BPW49,5 million (US$4,9 million) for the period ended 31 December 2018 and, as at the same date, had gross assets of BWP42,3 million (US$3,9 million). Under the share sale agreement, Pro Civil will make a once-off upfront payment of US$5,4 million for the share capital of GDB. Gem Diamonds will use the sale pro- ceeds for general corporate purposes. In

The Ghaghoo mine during its operating years showing the decline (photo: Gem Diamonds).

July 2019  MODERN MINING  7