GEM DIAMONDS IN TALKS WITH “OTHER PARTIES” ON GHAGHOO SALE
Gem Diamonds has informed its shareholders that it is holding discussion with “other parties” concerning the sale of its Ghaghoo diamond mine in Botswana, after talks failed with one undisclosed party.
According to Mining Weekly, this “undisclosed party had made an offer in August to buy the mine”, but “no agreement could be reached” and the offer was withdrawn.
The Ghaghoo mine was placed on care and maintenance in February 2017. In its half-year report released in August, Gem Diamonds reported a 14% drop in revenue to $93 million year-on-year. Gem Diamonds attributed to the drop to “lower production from the Letseng mine in Lesotho and a decline in average diamond prices”.