Picture above: World wide diamond mines
DiamondCorp plc is a United Kingdom-based diamond producer. The Company operates in the long-established diamondiferous regions of South Africa. Its primary asset is the Lace Diamond Mine, located 200 kilometers south-west of Johannesburg and approximately 20 kilometers from Kroonstad in the Free State Province of South Africa. The Lace property consists of approximately 1,180 hectares and potentially contains more than 13 million carats of diamonds in tailings and kimberlite. In addition, Lace has been granted new order prospecting rights over two further properties, namely the Silverbank and Moregroet properties, both of which adjoin the Lace property, where additional kimberlites have been identified. [source: companydatabase.org]
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Mining Weekly
written by Martin Creamer
Tuesday December 18, 2012
JOHANNESBURG – South African diamond mine development and exploration company, the JSE- and Aim-listed DiamondCorp, has finalised the funding needed for expansion of its Lace diamond operation in South Africa.
The company said in a Stock Exchange News Service announcement that it had conditionally raised £4.2-million through the issue of 14% senior secured convertible bonds to total R40-million of bonds issued to investors in South Africa and £1.4-million to investors in the UK.
The bond issue was described as the “last piece of the funding jigsaw”.
It equated, the company said, together with the $6-million term loan from Tiffany subsidiary Laurelton Diamonds, to the R113-million needed to finalise the funding for the 1.2-million-ton-a-year underground block cave development on 47 level at the Lace diamond mine.
The proceeds from the bonds and the Tiffany loan would allow DiamondCorp to meet its initial drawdown condition on the R220-million project finance facility secured from South Africa’s State-owned Industrial Development Corporation, providing overall project funding of R320-million for the Lace mine development, including a 33% capital contingency.
Investors in the UK bonds included DiamondCorp CEO Paul Loudon and company chairperson Euan Worthington, who have each invested £100 000, and Loeb Aron & Co, which has invested £60 000. DiamondCorp board members Loudon and Jonathan Willis-Richards are directors of Loeb Aron & Co.
Bond interest must be paid quarterly in arrears and capital on December 31, 2018.
“We are very pleased to have arranged the funding required for the Lace underground development in a period of extremely challenging capital markets,” said Loudon.
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Mining Weekly
written by Staff
Sunday December 16, 2012
JOHANNESBURG – Southern Africa-focused DiamondCorp has agreed a term loan of $6-million with a subsidiary of Tiffany & Co in exchange for an offtake agreement for diamond production from its flagship Lace mine, in the Free State.
DiamondCorp would draw down the Laurelton Diamonds loan in two equal tranches on January 10 and April 10, with the proceeds advanced to its 74%-owned subsidiary Lace Diamond Mines (LDM) and used to complete the funding required for the 47 level block cave development.
The loan would bear a 9% interest and must be repaid in full by the eighth anniversary of the second funding date. The loan could be repaid early in part or in full without penalty.
The loan is subject to the completion of legal due diligence and execution of binding legal agreements.
The offtake agreement would take effect from the first funding date until the end of the life of the mine.
Subject to any purchases by the South African State Diamond Trader, the offtake agreement would give Laurelton Diamonds the right to purchase, on commercial terms related to fair market value, production from the Lace mine which meets the quality and colour standards required to yield Tiffany-quality polished diamonds.
Special stones, and those diamonds which do not meet the Tiffany standard, would be excluded from the offtake agreement.
Commenting on the loan and the offtake agreement, DiamondCorp CEO Paul Loudon said the company was excited to have secured such a “prestigious funding partner” as Tiffany.
“Their decision to provide project finance in return for access to a long-term supply agreement is testament to the quality of the Lace diamonds and an expression of confidence in DiamondCorp's development strategy," he concluded.
The Lace mine would produce 380 000 ct in the early years, averaging 260 000 ct over the 26-year life-of-mine.
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