Petra Diamonds owns the Cullinan Diamond Mine in South Africa, one of the world’s largest diamond resources. In early October, the company said it was undertaking a ‘strategic review’ to examine all possible solutions to liquidity needs.
It was recently announced that a Petra Diamonds subsidiary has confirmed an offtake deal that will provide near-term liquidity, given as an advance for future rough production.
“Cullinan Diamond Mine Proprietary Limited signed a binding advance payment offtake agreement with a midstream diamantaire group,” explains Leah Meirovich of Rapaport News.
“The deal will see the offtake group pay Petra at least $20 million through revolving advance payments for all future run-of-mine production.
“Additionally, Petra signed a separate contract with its senior secured lender, which extends its repayment due date on outstanding debt for 12 months.”
Petra Diamonds has confirmed a 34 per cent decline in revenue in the first quarter of the financial year, despite an 18 per cent increase in sales volume.
The company has confirmed that its 'strategic review' remains underway after José Manuel Vargas stepped down as chair of the board and company director with immediate effect. Vargas previously oversaw the company's 2025 refinancing. Lerato Molebatsi is interim board chair.
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