Tychean makes a play for Blom Diamonds

2nd June 2017 By: Natasha Odendaal - Creamer Media Senior Deputy Editor

JOHANNESBURG (miningweekly.com) – ASX-listed Tychean Resources has inked a binding agreement to acquire a 74% interest in South Africa-based diamond company Blom Diamonds, from Ernest Blom.

The deal, which includes Blom Diamond Cutting Works and Mons Montis Diamonds, will transform Tychean into a vertically integrated diamond-focused company.

Tychean proposes to acquire a 74% equity interest in Blom Diamonds through the issue of 68.45-million Tychean shares to Blom, who was proposed to potentially step in as CEO of Tychean.

Some 433.5-million performance shares will be issued for each of three earnings before interest, taxes, depreciation and amortisation (Ebitda) milestones to be reached over the next three years, including Ebitda of R19.6-million for the financial year ended June 30, 2018; R22.1-million in the 2019 financial year and R25.5-million in 2020.

The transaction remained subject to final due diligence, regulatory approvals and approval by Tychean shareholders.