Petra presently owns 75% of Williamson Diamonds, which operates the namesake mine. Tanzania’s authorities has the remaining 25%.
A framework settlement with the Tanzanian authorities, introduced early this week, will see Petra’s shareholding dropping to 63% and the federal government’s share growing to 37%.
Upon completion of Wednesday’s deal Petra and Caspian will every personal 31.5% of Williamson Diamonds.
Caspian will fund the acquisition by way of the settlement of $11.1 million of previous technical companies funds Williamson owes it. The Tanzanian agency pays the remaining quantity by way of $3.9 million price of technical companies geared toward ramping-up operations on the diamond mine.
Petra lately resumed operations and gross sales at Williamson, the nation’s solely main diamond mine, with estimated manufacturing for fiscal 2022 anticipated to be between 220,000 and 270,000 carats.
The asset had been on care and upkeep since April 2020 on account of a collapse in diamond costs following the world covid-19 outbreak.
The corporate has confronted allegations of human rights abuses on the mine, ensuing from the actions of its safety guards.
The miner formed in February an internal committee to supervise the investigation, which concluded that “regrettable” incidents did happen on the mine up to now. Shortly after, it reached a £4.3 million (about $6m) settlement with claimants, although it did not admit legal responsibility on the time.
The framework settlement introduced on Monday additionally settles different long-standing, historic disputes across the Williamson mine, with WDL assuming legal responsibility and agreeing to pay the federal government $20 million in installments.