Diamondcorp secures US$5 million loan
by Tiffany Marlow
DiamondCorp plc, an emerging diamond producer in South Africa, has arranged a loan facility to an amount of US$5 million with Africa Opportunity Fund LP (AOF).
The AOF loan comprises cumulative, redeemable, secured bonds which bear interest at a rate of 12 per cent per annum. The bonds are to be repaid over three years, with principal payments of US$500,000 due after 18 months, US$1 million after 24 months, US$1.5 million after 30 months and the balance of US$2 million after 36 months.
The company will use the funds arranged from the loan to accelerate development of phase two underground mining at its 74%-owned Lace diamond mine and supplements the R26 million (US$3.3 million) of new equity placed recently with South African institutions.
DiamondCorp CEO Paul R. Loudon said, in these periods of difficult debt and equity markets, I am delighted in the vote of confidence demonstrated by AOF in the potential of the Lace diamond mine to deliver significant cashflow and earnings over a long mine life.
Story link: Diamondcorp secures US$5 million loan
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