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Gareth Penny Leads Botswana Mine Purchase
May 25, 2017 3:50 AM
By Rapaport News
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RAPAPORT... Former De Beers CEO
Gareth Penny has partnered with a high-end colored-diamond manufacturer to buy
Firestone Diamonds’ mining operations in Botswana.
Penny and Diacore
Diamond Group — which cut the most expensive polished diamond in
history — will potentially buy the business for up to $5.1 million in cash,
Firestone said. The main asset involved is the
BK11 mine, which Firestone had attempted to sell to Tango Mining until the deal
fell through last September due to the bidder’s lack of funding.
Under the deal announced Wednesday, Penny and Diacore will have
the option to acquire Firestone’s Botswana business during a 14-month period that
starts June 1. This would mean buying both Firestone Diamonds (Botswana), a
subsidiary of the miner, and the group’s 90% stake in Monak Ventures, Firestone
explained. The buyers will pay $100,000 immediately and a further $5 million
when they go through with the purchase. The transaction still needs approval
from the Botswana Competition Authority and from the Botswana government.
Penny was CEO of De Beers for five years until his departure
in 2010. He is currently the non-executive chairman of Russian metal miner
Norilsk Nickel, and chairman of Pangolin Diamonds Corp. Diacore, based in
South Africa, manufactured the 59.60-carat Pink Star diamond, which fetched
$71.2 million at a Sotheby’s auction last month.
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Tags:
De Beers, Diacore, Diacore Diamond Group, Firestone Diamonds, Gareth Penny, Rapaport News
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