Petra Seeks Buyer for Its Business

RAPAPORT... Petra Diamonds plans to sell the company as it struggles with mounting debt.The company owns the Cullinan, Finsch and Koffiefontein mines in South Africa. It also operates the Williamson deposit in Tanzania, which is currently on care and maintenance until rough prices in the diamond market improve.The miner will offer the business as a whole, and will also consider offers for parts of the operation or its assets, it said. It currently owes $650 million in senior secured bonds. So far, Petra has not received any offers for the business and noted it was uncertain whether any would eventuate. The miner is also not obligated to accept any offers made, it added."The board of Petra reserves the right to alter or terminate this process at any time...and to reject any approach or terminate any discussions with any interested party at any time," the company stated.Petra's revenue slumped 32% year on year to $91.3 million in the third quarter ending March 31, hit by weak demand at its March tender due to the onset of the coronavirus pandemic.Image: The processing plant at the Cullinan mine. (Petra Diamonds)