Diamondcorp’s 74 percent-owned Lace Diamond Mines has entered into an R280 million ($33.6 million) loan term sheet agreement with the Industrial Development Corporation (IDC) for the underground development of Lace mine, in South Africa and the purchase of mining equipment.
DiamondCorp said in a statement that term of the loan was expected to be 7 years.
"The key driver for management in seeking funding for the Lace mine development has been to find the optimum financing method which is the least dilutive for shareholders,” said DiamondCorp chief executive Paul Loudon.
"Therefore, we are delighted that we and our BEE partners have been able to agree in principle a debt financing proposal from the IDC to provide over 98 percent of the estimated capital required to establish a block cave development on the 47 level at the Lace mine."
The mine was operated from 1896 to 1931, and it produced about 700,000 carats of diamonds from 4.5 million tonnes of kimberlite at a recovered grade of 16 carats per hundred tones (cpht).
The production was reported to be high quality white diamonds, with the biggest stones recorded historically being 122 and 86 carats.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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