Petra Diamonds Limited (LSE:PDL, OTC:PDLMF) jumped 12% after signing a deal to sell its entire interest in Williamson Diamonds for up to US$16 million to partner Pink Diamonds.
The US$16 million consideration is payable out of WDL's distributable cash, with 20% of any distributable cash generated annually payable to Petra until this consideration is fully paid.
Richard Duffy, Petra chief executive, commented: "Since we entered into the previous transaction with Pink Diamonds, it has become increasingly clear to both Petra and Pink Diamonds that it would be preferable for WDL to come under consolidated ownership.
“We believe that Pink Diamonds, who are affiliated to Taifa, the long-term technical services contractor at the Williamson Mine, will have the technical and financial capability to conduct operations in a responsible manner for all stakeholders.”
Shares rose 3.3p to 29.4p.