Last checked at 29 Sep 2010 07:00
| Immediate Release | 29 September 2010 |
Petra Diamonds Limited
("Petra" or "the Company" or "the Group")
IFC / RMB Debt Facility Agreements Signed
Further to the announcement of 2 June 2010, Petra is pleased to confirm that it has now signed final loan agreements (the "Agreements") 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 the new secured debt facilities of approximately US$78 million.
The Agreements provide Petra with a US$40 million loan from IFC and a US$38.7 million (ZAR300 million) loan from RMB as well as the extension of the Company's existing US$12.9 million (ZAR100 million) RMB group overdraft facility. Together with contributions from Petra's own treasury, the facilities will primarily finance the expansions of the Williamson mine in Tanzania and the Cullinan mine in South Africa. In addition, the facilities will be applied to general Group working capital needs and, immediately after completion, settlement of the outstanding US$31 million loan due to Al Rajhi Holdings W. L. L. (the "Al Rajhi Loan"), thereby removing this short term debt obligation from Petra's balance sheet.
Each of the loan facilities under the Agreements is interdependent and completion of the Agreements, enabling Petra to draw down on the facilities, is conditional upon, inter alia, certain conditions precedent being satisfied. The principal conditions precedent relate to the perfection of security over the Group's assets, the execution of the relevant documentation to ensure interdependence of the Agreements, consents required from the Tanzanian Government and the South African Reserve Bank as well as the irrevocable instruction to repay the Al Rajhi Loan. Petra expects to have met all of the conditions precedent before the end of October. The Agreements contain standard events of default and warranties for facilities of this size and nature.
The remaining material details of the debt facilities were set out in the Company's announcement of 2 June 2010.
Johan Dippenaar, Petra's CEO, commented: "We are pleased to have secured the loan facilities through the signature of the final form loan agreements and we will be working hard to satisfy the conditions precedent and achieve draw down as soon as possible. Completion of this financing will be an important step in enabling the Company to deliver on its core objectives of doubling production by 2014 and trebling it by 2019."
Notes
1. As in the announcement of 2 June 2010, an exchange rate of US$1:R7.75 has been used for the purposes of this announcement.
For further information, please contact:
| Cathy Roberts | Telephone: +44 20 7318 0452 |
| Petra Diamonds, London | cathyr@petradiamonds.com |
| Bobby Morse / Katharine Sutton | Telephone: +44 20 7466 5000 |
| Buchanan Communications | bobbym@buchanan.uk.com katharines@buchanan.uk.com |
| Ryan Gaffney / Andrew Chubb | Telephone: +44 20 7050 6500 |
| Canaccord Genuity Limited (NOMAD and Joint Broker) | ryan.gaffney@canaccord.com andrew.chubb@canaccord.com |
| Joshua Critchley / Martin Eales | Telephone: +44 20 7653 4000 |
| RBC Capital Markets (Joint Broker) | joshua.critchley@rbccm.com martin.eales@rbccm.com |
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About Petra Diamonds
Petra Diamonds is a leading independent diamond mining group and an increasingly important supplier of rough diamonds to the international market. The Company offers a unique growth profile within the diamond sector, with a core objective to double annual production to around two and a half million carats by FY 2014 and more than treble production to over three million carats by FY 2019. Beyond this target, the Group's major resource base of 261 million carats provides scope for further organic growth going forward.
Petra has a well-diversified portfolio, with interests in seven producing mines: six in South Africa (Cullinan, Koffiefontein, Kimberley Underground, Helam, Sedibeng and Star) and one in Tanzania (Williamson).
Petra 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).
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. It creates opportunities for people to escape poverty and improve their lives. It does so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, IFC's new investments climbed to a record US$18 billion in fiscal 2010. For more information, visit www.ifc.org.
About RMB
RMB, a division of the FirstRand Bank Limited, is a leading diversified financial services brand encompassing investment banking, fund management, private wealth management and advisory services. The bank offers innovative financing solutions to its clients in South Africa and across Africa. For more information, visit www.rmb.co.za.