Business
Facilities to Fund Williamson
Facilities to Fund Williamson.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n RNS Number : 9040M Petra Diamonds Ld 02 June 2010 \n \n\n \n \n\n\n\n\nImmediate Release\n\n\n2 June 2010\n\n\n\n\n \n \nPetra Diamonds Limited \n(\"Petra\" or \"the Company\" or \"the Group\")\n \nFacilities to Fund Williamson and Cullinan Expansion\n \n \nPetra Diamonds Limited announces that, further to previous public statements regarding the funding of core production growth, it has agreed terms with IFC (a member of the World Bank Group) and Rand Merchant Bank (\"RMB\"), a division of FirstRand Bank Limited, (together the \"Lenders\") with regards to new debt facilities of approximately US$78million.\n \nThe facilities will, together with contributions from Petra's own treasury, primarily finance the expansions of the Williamson mine in Tanzania (\"Williamson\") and the Cullinan mine in South Africa (\"Cullinan\"). In addition, the facilities will be applied to general Petra working capital needs, giving the Group flexibility to settle the outstanding loan due to Al Rajhi Holdings W. L. L. (\"Al Rajhi\") and removing this short term debt obligation from Petra's balance sheet. \n \n \nHighlights\n· Petra agrees terms for US$40 million (IFC) and approximately US$38.7 million (R300m) (RMB) five and a half year debt facilities to finance the expansions of Williamson and Cullinan\n· On completion of this debt transaction, the expansion plans for Williamson and Cullinan will be fully financed, assuring the capital roll-out required to take Group annual production to over 3 million carats\n· IFC and RMB involvement endorses the quality of Petra's asset base, the strength of its management team and the solid fundamentals for revenue and earnings growth \n· Long term strengthening of balance sheet - Petra intends to settle the short term Al Rajhi loan (US$31 million) following completion of the debt facilities\n· On settlement of the Al Rajhi loan, and assuming all new debt facilities are fully drawn down, Petra's overall debt will only increase by US$47 million \n \n \nJohan Dippenaar, Petra's CEO, commented, \"We are pleased to have agreed terms for these financing facilities with IFC and RMB. This financing is an important and inde...