Miner Pe­tra Di­a­monds to Raise $178 Mil­lion to Cut Debt

Africa Outlook - - News -

Min­ing firm, Pe­tra Di­a­monds said it would raise $178 mil­lion from in­vestors to cut debt af­ter it was hob­bled by a strong South African rand, de­lays in pro­duc­tion, strikes and a con­fis­cated con­sign­ment of di­a­monds.

Work­ers at Pe­tra’s South

African oper­a­tions downed tools in Septem­ber over wages and the Tan­za­nia Govern­ment con­fis­cated a con­sign­ment of di­a­monds, which has still not been re­turned.

There were also de­lays in ramp­ing up pro­duc­tion at its Cul­li­nan and Fin­sch mines in South Africa and a lack of re­funds on value-added-tax (VAT) from the Tan­za­nian Govern­ment.

New shares would be of­fered at 40 pence, a 35.6 per­cent dis­count to the the­o­ret­i­cal ex-rights price of 62.15 pence cal­cu­lated in ref­er­ence to the re­cent clos­ing price.

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