Business
Completion Of Placing
Completion Of Placing.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n RNS Number : 5071D Petra Diamonds Ld 03 December 2009 \n \n\n\n\n\n\n\nImmediate Release\n\n\n3 December 2009\n\n\n\n\n\nPetra Diamonds Limited\n(\"Petra Diamonds\" or the \"Company\")\n\nPlacing to raise ca. US$120 million \n\n\nPetra Diamonds, the international diamond mining group, announces that it has completed a placing (the \"Placing\") with institutional and other investors raising gross proceeds of US$120 million (£72.7 million) (the \"Placing Proceeds\").\n\nThe Placing Proceeds will be applied in part settlement of the US$80 million Al Rajhi Holdings W.L.L. (\"Al Rajhi\") loan as part of the option to increase Petra's holding in the Cullinan mine from 37 per cent. to 74 per cent. (as announced on 18 November 2009); to provide working capital to increase diamond production from its six producing mines in South Africa and Tanzania; to repay the US$20 million Al Rajhi convertible loan note; and to strengthen the Company's balance sheet.\n\nDetails of the Placing and use of proceeds\nA total of 121,200,000 new ordinary shares of 10 pence each in the capital of the Company (\"Ordinary Shares\") have been placed at a price of 60 pence per share (the \"Placing Shares\"), a discount of 9 per cent. to the Company's closing price of 66 pence on 17 November 2009 (the last day prior to the announcement of a potential placing) and a discount of 0 per cent. to the Company's closing price of 60 pence on 2 December 2009. The Placing Shares represent an increase of 65.9 per cent. in the Company's current issued share capital of 184,005,523 Ordinary Shares. The Placing is conditional, inter alia, on admission of the Placing Shares to AIM.\nThe Placing Shares have been placed in two tranches. The first tranche of 80,000,000 shares, raising gross proceeds of US$79.2 million (£48 million) (the \"First Tranche Placing Shares\"), has been placed firm on the basis of not exceeding the Company's current authorised share capital of 300 milli...