Petra Diamonds Secures Bid Financing For State-Owned Alexkor

As part of her bid for ownership of Alexkor, Petra Diamonds Ltd says it has secured bid funding for the South African state-owned Alexkor Diamond Mine. Alexkor, located on the West Coast of South Africa, has been battling financial problems, and facing a possible shut down.

Until May 2001 Petra held part of the management contract of Alexkor. Petra said that Belgian diamantaire Finkelstein Ch & Co NV, it's major shareholder, will back the acquisition funding needed by Petra to bid for the mine.

Alexkor's mining lease covers most of the coastal and shallow offshore part of Namaqualand from Port Nolloth to Alexander Bay, a stretch of land extending some 105 km. The successful bidder will receive a 51 percent equity in the mine and become strategic partner of the South African Government. Bid results will be announced by the end of this month.