Business
Placing Completion & Exercise
Placing Completion & Exercise.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n RNS Number : 3341E Petra Diamonds Ld 18 December 2009 \n \n\n\n\n\n\n\nImmediate Release\n\n\n18 December 2009\n\n\n\n\n\nPetra Diamonds Limited\n(\"Petra\" or the \"Company\")\n\nCompletion of Placing & Exercise of Cullinan Option\n\n\nHighlights:\n\n\n\nCompletion of the second tranche of the placing to raise total gross proceeds of US$120 million (£72.7 million) (\"the Placing\")\n\n\n\n\n\nExercise of the option to increase Petra's direct ownership in the Cullinan mine from 37 per cent. to 74 per cent.\n\n\n\n\nPlacing\nFollowing the passing of the resolution at its Annual General Meeting yesterday, Petra has completed the second tranche of the Placing announced on 3 December 2009, comprising the issue of 41,200,000 new ordinary shares of 10 pence each in the capital of the Company (\"Ordinary Shares\").\n\nUnder the Placing, Petra has now issued a total of 121,200,000 new Ordinary Shares at a price of 60 pence per share (the \"Placing Shares\") raising gross proceeds of US$120 million (£72.7 million). \n\nThe Placing Shares were placed in two tranches. The first tranche of 80,000,000 Placing Shares was admitted to trading on AIM on 4 December 2009. The second tranche of 41,200,000 Placing Shares will be admitted to AIM and trading in the same will commence at 8.00 a.m. today. \n\n\nExercise of Cullinan Option \nFollowing the successful completion of the Placing, Petra also announces that it has exercised the option, announced on 18 November 2009, to acquire Al Rajhi Holdings W.L.L.'s (\"Al Rajhi\") 37 per cent. interest in the Cullinan mine (the \"Option\"), increasing Petra's direct ownership in the mine to 74 per cent. \n\nThe exercise of the Option will serve to double the Company's attributable resources and diamond production at Cullinan, give Petra direct access to the cashflows from the Cullinan mine and significantly improve Petra's \nbalance sheet by reducing Cullinan debt.\n\nThe Cullinan mine&nb...