24th Apr 2015 07:03
LONDON (Alliance News) - Petra Diamonds PLC on Friday said it will launch a USD300 million note issue in order to fund the construction of a processing plant at the Cullinan mine in South Africa.
The FTSE 250-listed diamond miner said it will issue USD300 million in senior secured lien notes due 2020. Petra's lender group has also agreed, in principle and subject to the closing of the note issue, to increase its debt facilities by around USD81.6 million to USD302.4 million.
The proceeds from the note issue will be used to settle existing debt and, along with future drawdowns from Petra's debt facilities, will fund the construction of a modern processing plant at the Cullinan mine in South Africa.
The plant is set to cost around USD142.8 million, but Petra said it will improve the recovery of diamonds from the mine and improve the efficiency of the material flow at the site, therefore reducing operating costs in the future.
By Sam Unsted; [email protected]; @SamUAtAlliance
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