Business
Exploration Update
Exploration Update.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n RNS Number : 6119M Petra Diamonds Ld 02 February 2009 \n \n \n\n\n\n\n\n\n\n\n2 February 2009\n\n\n\n\n\nAIM: PDL\n\n\n\n\n\nPetra Diamonds Limited\n('Petra Diamonds' or 'the Company' or 'the Group')\n\nExploration update\n\nAcceleration of Petra's strategic focus on cash-generative diamond production\n\nPetra Diamonds, the international diamond mining group, announced on 19 December 2008 that it is focusing on building its cash-generative, world-class production portfolio. The Group has completed the strategic exploration review and today updates the market on developments.\n\n\nKey features\n\n\nThe strategic exploration review (including the decisions announced on 19 December) has reduced Petra's annual exploration spend by some US$25 million \n\n\nBotswana - a scaled down but highly focused exploration campaign will reduce spend to US$500,000 for the 6 months to June 2009. Thereafter, Petra has earmarked an annual spend of US$500,000 in Botswana, the only group exploration spend going forward \n\n\nSierra Leone - Petra's joint venture partner at Kono has assumed sole funding of the Kono advanced exploration project. Petra has until December 2009 to elect to refund its partner for the 51% of the 2009 exploration spend, or to dilute its interest in Kono \n\n\nAngola - Petra Diamonds previously announced its withdrawal from the Alto Cuilo project and has now also withdrawn from the neighbouring Luangue project \n\n\nJohan Dippenaar, Chief Executive Officer, comments:\n\n'Petra has reduced its exploration programme in order to focus resources on the development of its cash-positive producing operations as well as on exploration in Botswana, which requires minimal spend but is highly prospective.\n\n'The decision to focus on cash generative production at our world-class assets is the right move to enhance our growing business momentum. As one of the lower cost diamond producers, our portfolio of world-class assets, low levels of debt and our robust management team places the group in a strong position to benefit as soon as diamond prices normalise.'\n\nBackground\nPetra Diamonds&n...