Lucara Diamond has renewed its revolving term credit facility with The Bank of Nova Scotia (Scotiabank) for a three year term.
It said in a statement that the credit facility limit had also been increased to $50 million.
The applicable interest rate of any loan under the facility would be determined by the company’s leverage ratio at any given time.
"We are delighted with the continued demonstration of Scotiabank’s support of our business plan and strategy,” said Lucara chief executive William Lamb.
“While Lucara continues its strong cash flow generation the credit facility provides for future risk mitigation and allows the company to react quickly to potential growth investment opportunities.”
Lucara was a “well-positioned” new diamond producer and its two key assets are the Karowe mine in Botswana and the Mothae project in Lesotho.
The 100-percent owned Karowe mine was in production, while its 75 percent owned Mothae project completed its trial mining programme.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
