GDB property to sale for US$5.4m
Ghaghoo diamond mine The primary asset in Botswana Gem Diamonds Limited has entered into a binding agreement with Pro Civil (Pty) Ltd for the sale of 100% of the share capital of Gem Diamonds Botswana Proprietary Limited (GDB). Pro Civil is a company registered in Botswana. GDB's primary asset is the Ghaghoo diamond mine in Botswana which has been on care and maintenance since March 2017, and which is wholly owned by GDB. GDB reported for the period ended 31 December 2018, loss before tax of BPW 49.5 million (US$ 4.9 million) and, as at the same date, had gross assets of BWP 42.3 million (US$ 3.9 million). Under the share sale agreement, Pro Civil will make a once-off upfront payment of US$5.4m for the share capital of GDB. Gem Diamonds will use the sale proceeds for general corporate purposes. In addition, Pro Civil will assume the environmental liability currently associated with GDB.