The companies have set up a special purpose limited liability company to purchase all of the issued capital in Superkolong Proprietary, which owns 30.4% stake in the South African company Kimberley Miners Forum Proprietary (KMF).
KMF, in turn, acquired various coarse, diamondiferous, kimberlite tailings dumps located near the town of Kimberley in South Africa from DeBeers.
Under the agreement, the joint venture will pay Superkolong vendors an amount of ZAR135m ($15.1m) in four installments, the first of which is due on 1 March 2013.
The transaction is subject to various conditions, including approval of the transaction by the board of directors and shareholders of involved parties, approval of the transaction by the South African take over regulation panel and the joint venture’s receipt of a South African Revenue Services tax clearance certificate.
The deal is also subject to the approval of the Financial Surveillance Department of the South African Reserve Bank to permit the joint venture to receive loan funding.
