Petra recovers 5 blue diamonds; warns over possible equity dilution
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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