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Petra takes control of Crown jewel diamond mine for $80m
18 Nov 2009The Cullinan mine in South Africa which recently coughed up a 507-carat diamond of exceptional colour and clarity, is to come under control of the London-listed Petra Diamonds.
Petra and Saudi bank Al Rajhi bought Cullinan — then an unprofitable mine belonging to De Beers — two years ago for $125 million (£74.4 million). Today Petra said it is buying out Al Rajhi's 37% stake for $80 million, taking its own holding to 74%. The rest of the mine is owned by a group representing local workers. A century ago the mine produced the biggest diamond found, the 3100-carat Cullinan Diamond which forms part of the Crown Jewels. A quarter of the largest stones ever found have come out of Cullinan.
Petra which is set to place new shares to raise $100 million to finance the deal, also reported today that recent 58-carat and 53-carat finds from Cullinan have been sold for a better-than-expected $2.8 million.
