South Africa-based diamond producer Trans Hex is selling two of its Lower Orange River mines that it withdrew from production.
Lower Orange River Diamonds, a black-woman-owned company, has agreed to buy the assets, which consist of the Baken and Bloeddrif mines, for $5.9 million (ZAR 72 million), Trans Hex said last week.
Neither of the mines is currently in operation: Trans Hex placed Baken on care and maintenance in October 2017 after the project recorded a $2.9 million (ZAR 35.8 million) loss for the fiscal year ending March 31. Bloeddrif ceased production last May following a $4.5 million (ZAR 55 million) loss for the fiscal year due to weak mining grades. That mine is also on care and maintenance.
Trans Hex’s shares jumped 52% on the day it announced the sale.
The management team of Lower Orange River Diamonds has “extensive knowledge of and experience in the diamond exploration and mining industry,” Trans Hex noted. However, the company is not currently engaged in any other diamond mining operations, the seller said.