Business
Acquisition & Placing
Acquisition & Placing.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n RNS Number : 8526Z Petra Diamonds Ld 21 January 2011 \n \n\n \n \n\n\n\n\nImmediate Release\n\n\n21 January 2011\n\n\n\n\n \nTHE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR NEW ZEALAND OR ANY JURISDICTION IN WHICH SUCH PUBLICATION RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL.\n \n \nPetra Diamonds Limited\n(\"Petra Diamonds\", \"Petra\", the \"Company\" or the \"Group\")\n \nAcquisition of Finsch Diamond Mine & Placing to Raise £205 Million (US$325 Million)\n \n \nPetra Diamonds announces that it, together with its empowerment consortium, has entered into an agreement to acquire the Finsch diamond mine in South Africa (\"Finsch\") from De Beers Consolidated Mines Limited (\"DBCM\") (the \"Acquisition\") for R1.425 billion (approximately US$210 million). In addition, the Company has completed a placing of 136,698,212 new ordinary Petra Diamonds shares of 10 pence each (\"Ordinary Shares\") in the capital of the Company (the \"Placing Shares\") at a price of 150 pence per share (the \"Placing\") with institutional and other investors, raising gross proceeds of £205 million (approximately US$325 million) (the \"Placing Proceeds\").\n \n \nAcquisition and Placing Highlights:\n \n· Finsch is one of the world's major diamond mines and South Africa's second largest diamond mine by production\n \n· The Acquisition is a continuation of Petra's strategy to build a world-class diamond mining group - Finsch will further diversify Petra's portfolio, adding a second major over 1 million carats per annum (\"Mctpa\") mine, and will become the Group's eighth producing diamond mine\n \n· Finsch is expected to produce over 1.5 Mctpa in its first full year of production, more than doubling the Group's current production of ca. 1.3 Mctpa; it is expected that Group production (including Finsch), will increase to ca. 4 Mctpa by the 2014 financial year (\"FY\") and to over 5 Mctpa by FY 2019\n \n· Finsch brings a major diamond resource of 48.1 million carats (\"Mcts\") to the Group, including 26.6 Mcts of r...