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16 Sep, 2020 13:05 16 Sep, 2020 13:27

Petra recovers 5 blue diamonds; warns over possible equity dilution

petra, diamonds, carat

Petra Diamonds said on Wednesday that it has recovered five blue diamonds at its Cullinan mine in South Africa, as it warned that measures to improve its capital structure could result in significant equity dilution.

The type IIb diamonds are high quality in terms of both colour and clarity, as well as being significant in size, at 25.75, 21.25, 17.57, 11.42 and 9.61 carats.

"Given the challenges presented by the Covid-19 pandemic, the company is maintaining a flexible approach to sales. It is therefore still evaluating the optimal route to market for the stones and the company will release further information to its customer base on the marketing plan in due course."

Petra also said it remains in talks with its financial stakeholders and with the South African lender group about a long-term solution to improve its capital structure.

"The company will make a further announcement in relation to these discussions in due course," it said, adding that there can be no certainty the talks will result in agreement.

"In addition, these finds, whilst a positive development, will not have a material impact on the likely terms of the required long-term solution to improve the group’s capital structure, nor the significant level of equity dilution that existing shareholders are likely to experience in connection with its implementation."

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Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.