Miner Petra Diamonds to Raise $178 Million to Cut Debt

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.