May 14, 2019 / 1:45 PM / 7 months ago

CORRECTED-Miner Petra Diamonds sells its 425-carat legacy diamond (May 14)

(Corrects first paragraph to show sale of diamond was to Stargems Group and Choron (Belgium) BVBA, not only to Stargems)

May 14 (Reuters) - Petra Diamonds said on Tuesday it sold its 425-carat ‘Legacy of the Cullinan Diamond Mine’ diamond to Belgium-based Stargems Group and Choron (Belgium) BVBA for $15 million.

The miner, which recovered the diamond at its flagship Cullinan mine in March, said the sale was significant for the company.

Petra has been struggling to clear its multi-million-dollar debts after it borrowed heavily to revamp the Cullinan facility and began mining a new section of ore last July.

However, Cullinan has been profitable every year since Petra acquired it in 2008 and the mine is expected to generate free cash flow this year.

Shares of the miner were down 2.9% to 24.12 pence at 1:14 GMT. (Reporting by Samantha Machado in Bengaluru; Editing by Shailesh Kuber)

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