Bonas Group and the DelGatto Diamond Finance Fund have come up with a novel financial approach to assist junior and mid-sized diamond miners operating in Southern Africa and other regions.
Bonas will use its exclusive price book to evaluate run-of-mine (ROM) diamond products sent to its office in Dubai or that of DelGatto in Johannesburg.
Bonas will sort these ROM productions to generate lots that are deemed attractive for selling.
DelGatto will also promptly provide money to the ROM productions through the valuation and sale of the rough through tenders organised by Bonas in either Antwerp or Dubai.
Bonas said the viability of a tender is contingent upon a minimum total value; hence, modest ROM outputs may experience a delay in accumulating sufficient value to render the tender beneficial for all participants.
“This is the first time in our industry that small to midsized miners will have the ability to receive financing with a built-in sale structure and schedule. We are excited to bring this innovative solution to players at the top of the supply chain," said Bonas’ Charles Bonas.
DelGatto’s Chris DelGatto said this is a big step as they continue to seek out-of-the-box ways to fund an industry that is excluded from the traditional credit markets.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
