Petra Raises $120M to Repay Cullinan Loan
December 03, 09
Petra Diamonds has raised $120 million from institutional and other investors, the international diamond mining group announced on Tuesday. It said that $80 million of the raised money will be used to repay the Al Rajhi Holdings W.L.L. loan.
The loan was taken as part of the option to increase Petra’s holding in the Cullinan mine from 37 percent to 74 percent.
The rest of the funds are earmarked for working capital to increase diamond production from Petra’s six producing mines in South Africa and Tanzania; to repay the $20 million Al Rajhi convertible loan note; and to strengthen the company’s balance sheet.