Subject to shareholder approval, Petra Diamonds (AIM: PDL) and Xceldiam (AIM: XLD) today announced that they had entered into a agreement whereby Petra will essentially acquire Xclediam's assets for shares. Petra Diamonds and Xceldiam are both focused on kimberlite diamond exploration in Angola, and already have a joint venture agreement on the Luangue diamond exploration project.
Petra Diamonds will issue approximately 19.67 million shares to Xceldiam shareholders, valuing the company at £31.79 million based on Petra's closing price of 157 pence on the 27th February. Once the transaction is complete, Xceldiam will be a cash shell, and aim to seek new investments.
CEO and Chairman Timothy George said “Our progress and promising exploration developments on Luangue have been followed by Petra since we started activities in Angola. It is sensible now that Luangue continues to be developed alongside Alto Cuilo, improving the potential for the development of a kimberlite mine in the area.”