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3 Dec 2009 07:00
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Immediate Release |
3 December 2009 |
Petra Diamonds Limited
("PetraΒ Diamonds" or the "Company")
Placing to raiseΒ ca.Β US$120Β millionΒ
Petra 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$120Β million (Β£72.7Β million) (the "Placing Proceeds").
The Placing Proceeds willΒ be appliedΒ in part settlement of the US$80 million Al Rajhi Holdings W.L.L.Β ("Al Rajhi") loan as part of the option toΒ increase Petra's holding in the Cullinan mineΒ from 37 per cent.Β to 74 per cent.Β (as announced on 18 November 2009);Β to provide working capital to increase diamond production from its six producing mines in South Africa and Tanzania;Β toΒ repayΒ the US$20 millionΒ Al RajhiΒ convertible loan note;Β andΒ toΒ strengthenΒ theΒ Company'sΒ balance sheet.
Details of the Placing and use of proceeds
A total ofΒ 121,200,000Β new ordinary shares ofΒ 10Β pence each in the capital of the Company ("OrdinaryΒ Shares") have been placed at a price ofΒ 60Β pence perΒ share (the "PlacingΒ Shares"), a discount ofΒ 9Β per cent.Β toΒ theΒ Company'sΒ closing priceΒ ofΒ 66Β penceΒ onΒ 17 NovemberΒ 2009Β (the last day prior to the announcement of a potential placing)Β and a discount ofΒ 0Β per cent. to the Company's closing price ofΒ 60Β pence onΒ 2Β December 2009. The Placing Shares represent an increase ofΒ 65.9Β per cent. inΒ the Company's currentΒ issued share capitalΒ of 184,005,523Β Ordinary Shares.Β The Placing is conditional,Β interΒ alia, onΒ admissionΒ of the Placing Shares to AIM.
The Placing Shares have been placed in two tranches. The first trancheΒ ofΒ 80,000,000Β shares, raising gross proceeds of US$79.2Β million (Β£48Β million) (the "First Tranche Placing Shares"),Β hasΒ been placedΒ firmΒ on the basis ofΒ not exceedingΒ the Company'sΒ current authorised share capital of 300 millionΒ shares. The remainingΒ 41,200,000Β Placing Shares, raising gross proceeds of US$40.8Β million (Β£24.7Β million) (the "SecondΒ Tranche Placing Shares"),Β have also been placed firm but are conditional,Β inter alia,Β on the passing ofΒ aΒ resolution (the "Resolution") toΒ be proposed at the Company's annual general meeting on 17 December 2009Β (the "AGM")Β to increase the Company'sΒ authorised share capitalΒ toΒ 400 million shares.
The Placing is being led by Canaccord Adams Limited ("Canaccord")Β andΒ includesΒ Royal Bank of Canada Europe Limited ("RBC").
The Placing Proceeds, net ofΒ the placing agentsΒ and other professional fees,Β will beΒ utilisedΒ as follows:
in relation to the exercise of the option to increase the Company's ownership of the Cullinan mine from 37 per cent.Β to 74 per cent. detailed in the announcement of 18 November 2009:
US$24.6 million (Β£14.9Β million) for part settlement of the US$80 millionΒ (Β£48.5 million)Β Al Rajhi loan in relation to the Cullinan mine, being loan principal of US$15 millionΒ (Β£9.1 million)Β andΒ accrued interestΒ of US$9.6 millionΒ (Β£5.8 million); and
US$20.5 millionΒ (Β£12.4Β million) for repayment of theΒ US$20 millionΒ (Β£12.1 million)Β Al Rajhi convertible loan note together with accrued interest;
US$15.0 millionΒ (Β£9.1Β million) for development capital at the Cullinan mine;
US$15.0 millionΒ (Β£9.1Β million) for expansion capital at the Williamson mine; and
US$38.9Β million (Β£23.6Β million) for working capital of the Company and repayment of short term debt.Β The short term debtΒ was mainly accrued in the last year due to the fundingΒ by the Company of Petra'sΒ 75% interest in the Williamson mineΒ and funding ofΒ the feasibility study carried out at the Williamson mine, construction ofΒ theΒ plant and all underground development work at the Kimberley Underground mines, andΒ capitalΒ development work at the Cullinan mine.
The Placing Shares will, when issued, be credited as fully paid and will rankΒ pari passuΒ in all respects with the Company's existing Ordinary SharesΒ at the date of their relevant issue, including the right to receive all dividends and other distributions declared, made or paid on or in respect of such shares after the date of issue of theΒ relevantΒ Placing Shares.
Application has been made for theΒ First TrancheΒ Placing Shares to be admitted to trading on the AIM market of the London Stock Exchange plc ("AIM"). It is expected that admission of the First Tranche Placing Shares to AIM will take place and that trading in the same will commence onΒ 4Β December 2009. Subject,Β inter alia, to the passing of the Resolution, it is expected that admission of the Second Tranche Placing Shares to AIM will take place and that trading in the same will commence on 18 December 2009.
Johan Dippenaar, CEO of Petra, commented:
"Petra is delighted with the overwhelming support from our new and existing shareholders, who share our vision of becoming one of the world'sΒ leadingΒ diamond producers. We welcome over 40 new international long-only institutional investors to the register, which we hope will transform the liquidity of the Company's shares. The Placing not onlyΒ strengthens theΒ Company's balance sheet,Β allowingΒ PetraΒ to invest inΒ the development ofΒ our producing mines, butΒ willΒ also significantly increase ourΒ attributable resources, production andΒ cash flow following the consolidation of our holding in the Cullinan mine."
~ Ends ~
Β Β For further information,Β pleaseΒ contact:
|
Cathy Roberts |
Telephone: +44 20 7318 0452 |
|
PetraΒ Diamonds,Β London |
cathyr@petradiamonds.comΒ |
|
Bobby Morse / James Strong |
Telephone:Β +44 20 7466 5000 |
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Buchanan Communications |
bobbym@buchanan.uk.com jamess@buchanan.uk.com |
|
James Duncan / Nicola Taylor |
Telephone: +27 11 880 3924 |
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Russell & Associates |
james@rair.co.za nicola@rair.co.zaΒ |
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Mike Jones / Ryan Gaffney |
Telephone: +44 20 7050 6500 |
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Canaccord Adams |
mike.jones@canaccordadams.com ryan.gaffney@canaccordadams.com |
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Joshua Critchley/Martin Eales |
Telephone: +44 20 7653 4000 |
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RBC Capital Markets |
joshua.critchley@rbccm.com martin.eales@rbccm.com |
AboutΒ PetraΒ Diamonds
Petra Diamonds is a leading supplier of rough diamonds. A number of acquisitions have establishedΒ PetraΒ as one of the world's largest independent diamond groups by resources, with aΒ grossΒ total resource base of 262 millionΒ carats.Β PetraΒ increased its annual production fivefold in the year to June 2009 to over 1 million carats and the Company's objective is to continue to increase supply and develop its stature as a world-class diamond group.
InΒ South Africa,Β PetraΒ has interests in five producing mines - Cullinan, Koffiefontein, Helam, Sedibeng and Star - and has also agreed to acquire, from De Beers, the Kimberley Underground mines (this acquisition is expected to complete imminently). InΒ Tanzania,Β PetraΒ has an interest in the Williamson mine. These mines are noted for the production of valuable diamonds, but in particular the Cullinan mine is famed as the source of the largest rough gem diamond ever found. More recently an internally flawless, fancy vivid blue diamond of 7.03 carats from the Cullinan mine sold for US$9.4 million in May 2009,Β the highest price per carat ever paid for any gemstone sold at auction, and a white diamond of over 507 carats was recovered in September 2009.Β A 168 carat white diamond recovered in the same production series as the 507 carat diamond was sold on 26 November 2009 forΒ US$6.28 million.
PetraΒ conducts all its operations according to the highest ethical standards, and will only work in countries which are members of the Kimberley Process.
The Company is quoted on the AIM market of the London Stock Exchange (AIM: PDL).
www.petradiamonds.com
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