Petra Diamonds Limited (‘Petra’ or ‘the Company’), the AIM quoted diamond mining group, announces the implementation of the formal Joint Venture Agreement with BHP Billiton World Exploration Inc (‘BHP Billiton’) regarding the Alto Cuilo diamond project in north eastern Angola.
On Tuesday 30 November BHP Billiton subscribed for 901,060 shares in the Company at a price of 88.2 pence per share. The price was based on the average of the closing mid-market prices of Petra’s shares for the ten dealing days to 26 November 2004.
Application has been made for these shares to be admitted for trading on AIM and dealings are expected to commence on 6 December 2004.
As announced on 14 September 2004, under the terms of the Joint Venture Agreement BHP Billiton can, by investing up to US$60 million in the JV vehicle (‘Vehicle’) which holds Petra’s share in Alto Cuilo, acquire a share of up to 75% of the Vehicle.
Petra has, to date, focused its work on the area around the Mussunuige-Luangue river interfluve (‘the ML Complex’) in which Petra, along with its Angolan partners Endiama and Moyoweno, has already established the presence of a diamondiferous kimberlite and alluvial complex. Under the terms of the Joint Venture, BHP Billiton will work with the Company to undertake regional exploration on the balance of the concession and to develop the ML Complex further.
Adonis Pouroulis, Chairman of Petra Diamonds, commented, “Further to the announcement of the Joint Venture terms on 14 September, we are delighted to have completed the formal Joint Venture Agreement with BHP Billiton. This is a very exciting project and although exploration is still at an early stage, results so far have been encouraging. Along with BHP Billiton, we hope to expedite exploration on the Alto Cuilo project and look forward to obtaining further definition of the deposits. ”
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For further information, please contact:
Adonis Pouroulis / David Abery
Tel: +27 11 467 6710 Cathy Malins / Annabel Leather
Tel: +44 20 7493 3713