Petra Diamonds Puts Itself Up for Sale

Financially troubled Petra Diamonds, which owns three diamond mines in South Africa and one in Tanzania, is putting itself up for sale.

Founded in 1997, Petra owns the Finsch, Cullinan, and Koffiefontein mines in South Africa, as well as the Williamson mine in Tanzania, which is currently under care and maintenance. All those properties were purchased from their original owner, De Beers.

Bidders can express interest in all or part of its assets. Rothschild & Co. is acting as strategic adviser of the transaction. So far, no offers have been received.

In March, the company launched a strategic review of its finances, particularly looking at the $650 million outstanding 7.25% senior secured notes that are due for repayment on May 1, 2022.

In its most recent financial results, for the third quarter ending March 31, revenue fell 32%, due in part to weak sales at its March tender, which was affected by the COVID-19 pandemic.

Petra is not the only miner having trouble in the age of COVID-19. In April, Dominion Diamond filed for insolvency protection in Canada.

Source: JCKonline