17th Jun 2005 08:00
Petra Diamonds Ld17 June 2005 Petra Diamonds Limited ("Petra" or "the Company") Admission to trading on the AIM Market of London Stock Exchange plc ("AIM") Completion of Merger with Crown Diamonds NL £17.1 million placing Petra Diamonds Limited (LSE: PDL), the diamond mining group, announces thecommencement of trading today on AIM of the Company following the completion ofthe merger with Crown Diamonds NL ("Crown") ("the Merger") and a placing of20,084,352 new ordinary shares at 85 pence per share with institutionalinvestors raising £17.1 million before expenses ("the Placing"). Williams deBroe Plc acted as nominated adviser in connection with Petra's admission to AIM,and broker to Petra in connection with the Placing. As a result of the Merger, Petra has issued 37,962,256 new ordinary shares toformer Crown shareholders, which will rank pari passu with Petra's existingordinary shares in all respects. In addition, 16,163,191 Crown loan notes havebeen converted into Petra loan notes. These notes must be redeemed or convertedinto Petra ordinary shares (on an 8 for 1 basis) on or before 30 November 2005.On admission to AIM, Petra's issued ordinary share capital stands at 130,936,572shares. Petra's ordinary share capital and convertible notes will commence trading onthe ASX on 20 June 2005. The ASX trading symbol for the ordinary shares will bePDL. As a result of the Merger, Crown has become a subsidiary of Petra and theenlarged Petra Group now has: - an impressive exploration and asset base, coupled with successfulincome-producing and cash flow positive diamond mines;- a well balanced portfolio of diamond assets in various phases of development,ranging from green field exploration to production; - an enhanced geographical spread of diamond assets on the African continent(Angola, South Africa and Sierra Leone); - an experienced management team and workforce; and - a solid business capable of further expansion. The Placing The Company is issuing 20,084,352 new ordinary shares at 85 pence per share toraise approximately £17.1 million, before expenses. These shares will rank paripassu with Petra's existing ordinary shares in all respects. The proceeds of the Placing receivable by Petra will be used as follows: - £2 million on deferred acquisition costs in respect of the Helam mine;- £2.7 million on developing the Sierra Leone joint venture properties;- £3.7 million on new business opportunities in Southern Africa and SierraLeone;- £1.2 million on Angolan business opportunities, further to Alto Cuilo;- £3.2 million on settlement of term loans;- £1.4 million on securing the Petra's outstanding loan notes;- £1.8 million on costs and placing fees related to the Merger and admission toAIM and the ASX; and- £1 million on group working capital. Board of directors As a result of the Merger, two members of the Crown board, Johan Dippenaar andJames Davidson, have been appointed to the Petra board as Chief ExecutiveOfficer and Technical Director of the Company respectively. Kevin Dabinett,formerly Chief Executive Officer, has become Chief Operating Officer of theCompany. The search for a new non-executive director to replace Volker Rufferhas commenced and Mr Ruffer will remain as a director of the Company until suchtime as a suitable replacement has been found. Christoffel Johannes Dippenaar (CA), aged 47, was previously Chief ExecutiveOfficer of Crown. He is a chartered accountant by profession and a member of theChartered Accountants of South Africa with over 17 years' experience in themanagement of companies of which 15 years has been in the management of miningcompanies. James Murry Davidson, aged 59, was previously Technical Director of Crown. He isa qualified geologist and a member of the Geological Society of South Africawith over 20 years' experience in mine management. Strategy Petra's strategy is to build a mid-tier diamond group by creating a solidexploration base combined with successful income producing mines and ageographically diversified spread of quality diamond assets on the Africancontinent. The Merger will balance Petra's current exploration portfolio withCrown's producing diamond operations, allowing the Company to benefit from adiamond market in which analysts predict demand will exceed supply in the shortto medium term. Petra will continue to consider other opportunities to furtherenhance its portfolio of diamond assets. Adonis Pouroulis, Chairman of Petra, commented, "The merger with Crown is amajor deal for Petra and we are delighted that the transaction, the placing, theadmission to AIM and listing on ASX are now all completed. Our well-balancedexploration and producing asset base gives us a solid foundation from which tobuild the Company. We are excited by the future prospects ahead of us, both interms of developing existing projects and also in the assessment of excitingopportunities within the diamond sector." For further information, please contact: David Abery Justine Howarth /Petra Diamonds, South African office Annabel LeatherTel: +27 11 467 6710 Parkgreen Communications, London Tel: +44 20 7493 3713 Frank H. Moxon Karl Paganin /Williams de Broe Plc, London Michael SoucikTel: +44 20 7588 7511 Euroz Securities, Perth Tel: +61 8 9488 1430 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Petra Diamonds