GIANT ROUGH DIAMOND SELLS FOR RECORD $35M

The following article appeared in the National Jeweler Network electronic newletter:

London -- Petra Diamonds Ltd. announced today (February 26) that a 507-carat piece of rough unearthed at its Cullinan mine in September sold for $35.3 million, the highest sale price on record ever achieved for a rough diamond.
     According to a press release from the london-based mining company, Hong Kong-based Chow Tai Fook Jewellery Company Ltd. bought the hefty piece of rough, dubbed the "Cullinan Heritage," at a tender in South Africa. Petra doesn't know at this stage what Chow Tai Fook plans to do with the diamond.
     According to the release, the price achieved for the Cullinan Heritage is a reflection of the incredible rarity of the Diamond in terms of size as well as color and clarity. The rough sold for approximately $69,557 per carat.
     At 507.5 carats, the Cullinan Heritage is the 19th largest piece of rough unearthed in history and is one of many importnat diamonds to come out of the South African Cullinan mine, which was once owned by De Beers.
     Other extraordinary diamonds found at the mine include the "Cullinan," which at 3,106 carats is the largest ever gem-quality rough diamond ever found, the "Golden Jubilee" at 755 carats rough, and "The Centenary," at 599 carats rough.
     "It is fitting that the Cullinan Heritage should achieve a sale price of $35.3 million, the highest sale price on record ever achieved for a rough diamond, as it has the potential to produce one of the world's most important polished gems," Petra Chief Executive Officer Johan Dippenaar said in the release. "The sale proceeds further bolster Petra's treasury and will be invested in the growth of core assets."
     According to the release, proceeds from the sale will give Petra more flexibility in funding the development of underground operations at the Cullinan mine and the expansion project at the Williamson mine, both of which are important steps in taking Petra's annual production from its current 1 million carats to more than 3 million carats by 2019.