Gem Diamonds Limited Letseng mining lease renewal (7294O)
04 October 2019 - 4:00PM
UK Regulatory
TIDMGEMD
RNS Number : 7294O
Gem Diamonds Limited
04 October 2019
4 October 2019
GEM DIAMONDS LIMITED
("Gem Diamonds" or "the Company")
Letšeng mining lease renewal
Gem Diamonds Limited (LSE: GEMD) is pleased to announce that the
mining lease for the Letšeng mine has been renewed by the
Government of the Kingdom of Lesotho ( the Government ).
Following a successful statutory negotiation process, the terms
of the renewed mining lease were agreed with the Lesotho Mining
Board and include the following material terms
-- The lease is renewed with immediate effect for a period of 10
years ( the maximum period allowed under the 2005 Mines and
Minerals Act - the Act ) with an exclusive right granted to Letšeng
to renew the mining lease for a further period of 10 years
-- The respective shareholding in the Letšeng mine remains unaltered
-- The royalty payable in respect of diamonds sold by Letšeng is
increased from 8% to 10% ( the current stipulated rate under the
Act ) with effect from 3 October 2019
-- The royalty may be remitted in whole or in part in the event
that Letšeng embarks upon any material capital project
-- The number of work permits which may be granted to Letšeng in
respect of foreign nationals increases in order to fill any skills
gap at the mining operations
Gem Diamonds' CEO, Clifford Elphick commented:
"Gem Diamonds is proud of our long-standing partnership with the
Government and the people of Lesotho. The mining lease renewal will
allow the Letšeng mine to continue to make a very significant
economic and social contribution to the people of Lesotho. Gem
Diamonds would like to thank the Government of Lesotho for its
ongoing support and we look forward to continuing the shared value
creation long into the future."
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
The Gem Diamonds Limited LEI number is 213800RC2PGGMZQG8L67
For further information:
Gem Diamonds
Susan Wallace, Company Secretarial department
ir@gemdiamonds.com
Celicourt Communications
Mark Antelme / Jimmy Lea
Tel: + 44 (0) 20 8434 2754
About Gem Diamonds:
Gem Diamonds is a leading global diamond producer of high value
diamonds. The Company owns 70% of the Letšeng mine in Lesotho. The
Letšeng mine is famous for the production of large, top colour,
exceptional white diamonds, making it the highest dollar per carat
kimberlite diamond mine in the world. www.gemdiamonds.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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