Petra Diamonds (LON:PDL) has agreed to exchange its interest in Sierra Leone's Kono Diamond Project in for shares in Stellar Diamonds (LON:STEL) , the project's joint-venture partner. Petra is focused on delivering production and revenue growth from its portfolio of world-class kimberlite mines, with a core objective to grow annual production from one million to over three million carats. According to the Company, the Kono kimberlite fissure project, whilst at an advanced stage of exploration and demonstrating positive project parameters, is not of a suitable scale to contribute to this objective and is no longer a core asset in Petra's portfolio.

Kono has no carrying value in Petra's balance sheet and there are no impairments to be recognised. The value of the disposal is £0.9m, based on a valuation of 20p per Stellar share. Petra will have a 4.45% stake in Stellar. Petra has also announced formation of a cooperation agreement giving it first option to discuss a joint venture of any current or future project in the Stellar portfolio. CEO Johan Dippenaar said Stellar 'is developing a number of other exciting diamond projects in West Africa'.

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