Business
Petra takes the helm at the C
Petra takes the helm at the C.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n RNS Number : 1573Z Petra Diamonds Ld 16 July 2008 \n \n\n\n\n16 July 2008\n\nPetra Diamonds Limited \n \nPetra takes the helm at the Cullinan Diamond Mine\n\n\nPetra Diamonds Limited ('Petra' or 'the Company'), the international diamond mining group, announces the completion of the acquisition of the Cullinan diamond mine ('Cullinan') by the Petra Diamonds Cullinan Consortium ('PDCC') from De Beers Consolidated Mines ('De Beers'). Petra's initial interest in PDCC is 37%. \n\nHighlights\n\n\nThe Cullinan kimberlite pipe is the second largest indicated diamond resource in the world by in-situ value; the addition of Cullinan transforms Petra into one of the world's largest diamond groups on a gross resource basis \n\n\nThe mine is renowned for producing many of the world's most spectacular diamonds (including over 300 stones weighing more than 100 carats), the most famous of which is the 3,106 carat Cullinan diamond. Cullinan is also the world's only significant source of truly rare and highly valuable blue diamonds\n\n\nFor the year 2008/09, the first year of operation in Petra's hands as the mine operator, Cullinan is expected to produce 700,000 to 850,000 carats and from 2009/10, when at full production, output is expected to increase to over 1 million carats per annum, with associated annual revenues of around US$100 million (all figures gross PDCC)\n\n\nThe members of PDCC are Petra (37% initial interest and an option to increase its stake in PDCC to 60%), Al Rajhi Holdings W.L.L. (37% initial interest) and PDCC's Black Economic Empowerment ('BEE') partners (26% interest) \n\n\nThe acquisition cost of R1 billion has been settled by PDCC in cash. PDCC has been funded by Petra and Al Rajhi each contributing US$40 million equity to the PDCC SPV and Al Rajhi providing US$95 million loan finance (unsecured, bearing interest at 8%). The total financing package of US$175 million (R1.4 billion) covers the acquisition cost as well as working capital and capex requirements\n\n\nPetra Diamonds is, at the outset, compliant with South African minerals legislation at Cullinan in that 26% of the equity in the operation is held by BEE interests, including a 12% stake that is held by an employee share trust\n\n\n\n\nAdonis Pouroulis, ...