16th Sep 2014 06:36
LONDON (Alliance News) - Petra Diamonds Ltd said Tuesday that it has sold a 122.52 carat blue diamond recovered in June for a value equivalent to USD27.6 million to a partnership comprising of the company and its polishing partner.
The FTSE 250-listed company said that the diamond has been sold to a beneficiation partnership comprising of Petra, holding 15%, and its polishing partner - which wishes to remain unnamed - holding 85%.
Petra said the polishing partner will settle its 85% of the agreed rough sales partnership value - USD23.5 million - immediately. Petra will record this sum as revenue in its financial results for the first quarter of 2015.
The sale price of USD27.6 million represents a price of USD225,269 per carat.
The stone will be cut and polished and upon sale of the polished, Petra will receive its 15% share in the proceeds, after beneficiation and related expenses, it said.
The diamond mining company with operations in Tanzania, Botswana and South Africa, recovered the exceptional diamond at the Cullinan mine in South Africa in June this year. The sale of the diamond was delayed until after the end of the company's financial year, ending June 30. The sale process officially commenced August 18 with the viewing process, held until September 12.
The Cullinan mine, which the company acquired in 2008, is well known as the source of many of the world's most spectacular diamonds, including the two main diamonds in the British Crown Jewels.
"We are pleased to have concluded this arrangement which records an excellent sales value for the rough stone, and also gives Petra exposure to the uplift in value post beneficiation. We look forward to providing the market with further information on the stone's journey at the appropriate time in the future," said Johan Dippenaar, CEO of Petra.
By Alice Attwood; [email protected]; @AliceAtAlliance
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