Kimberley Diamonds Limited (KDL) has announced the acquisition of Mantle Diamonds Limited (Mantle) from private equity firm Pacific Road Capital, who previously held a 100% stake in the British diamond business.
KDL is a mineral resource and exploration company that become incorporated in 2011 and owns and operates the Ellendale Diamond Project in Western Australia, which is currently estimated to produce roughly half of the world’s supply of rare fancy yellow diamonds.
Mantle, based in the UK, conduct diamond mining operations in Botswana, Canada, Finland and the Democratic Republic of Congo. In 2012, they commenced a substantial refurbishment of the Lerala Diamond Mine in Botswana, giving it a mine life of seven years, and it is estimated to have reserves of approximately 11mt with a grade of 28cpht.
Following the deal, the Lerala mine has now come under the control of KDL, providing KDL with access to the largest African diamond market, as well as interests in the Tenby and Commonwealth exploration projects in Canada’s Northwest Territories. Marking Pacific Road Capital’s exit, existing Mantle shareholders will gain approximately 13.5 million shares in KDL, giving them an overall 10% stake.
International law firm Holman Fenwick Willan (HFW) supplied legal advice in the deal, in a team led by Partner Alexis Kyriakoulis, assisted by Senior Associate Spencer Gold and Associates Flora Stewart and Carolyn Ang. Specialist input was provided by Pacific Road Capital relationship partner Rory Gogarty.
Legal Advisors On The Transaction
“International mining M&A is a core focus of the firm and we are delighted to have been able to assist Pacific Road Capital on their latest exit, which sees them roll over their interest in Mantle into a significant stake in Kimberley Diamonds”
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