Petra Diamonds (LON:PDL) has announced the launch of a US$300mln bond, the proceeds of which will help fund a new fit-for-purpose plant at the Cullinan Mine in South Africa.
At a cost of just under US$143mln, the new facility will help improve recoveries and, crucially, should protect large stones from breakage.
Improved efficiency of material flow should “significantly lower” operating costs, Petra said.
The injection of funds from the bond issue will also be used to repay but not totally cancel certain existing debt.
“We believe that this new, more diversified, funding package better serves our needs as a business as we continue to grow and evolve and provides additional financial flexibility as we pursue our stated growth strategy," said chief executive Johan Dippenaar.