London-listed Petra Diamonds has recovered five Type IIb blue diamonds of high quality, in terms of both their colour and clarity, at its Cullinan mine, in South Africa.

The diamonds are also significant in terms of their size, weighing 25.75 ct, 21.25 ct, 17.57 ct, 11.42 ct and 9.61 ct, and are assessed to be individual stones and not originally part of one larger diamond.

In a statement on September 16, Petra said blue diamonds were so rare that “there are no official statistics on their recovery”.

However, it adds that the Cullinan mine was known as the world’s most important source, with the last blue diamond of significance having been recovered at the mine in September 2019.

Petra said that it was, therefore, even more unusual to recover five high-quality blue diamonds around the same time, all in the space of one week’s production.

Meanwhile, given the challenges presented by the Covid-19 pandemic, the company is maintaining a flexible approach to sales and is still evaluating the optimal route to market for the diamonds.

These finds, while a positive development, would not have a material impact on the likely terms of the required long-term solution to improve the group's capital structure, nor the significant level of equity dilution that existing shareholders were likely to experience in connection with its implementation, Petra said.

Petra further confirmed that it continues to undertake discussions with the Ad Hoc Group (AHG) of holders of the Group's senior secured second lien notes and also with its South African lender group regarding a long-term solution to improve the group's capital structure.

The company is expected to make an announcement in relation to these discussions in due course.

While the company continues to have constructive engagement with the AHG and the lender group, there can be no certainty that these discussions will result in an agreement being reached.