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Kimberley Diamonds Receives $4M Funding for Lerala Mine
Jun 30, 2015 4:19 PM
By Jeff Miller
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RAPAPORT...
Kimberley Diamonds Ltd. received $3.8 million (AUD 5 million) under the terms of a loan agreement for AUD 10 million with
Zhejiang Huitong Auction Co. Ltd. of China to finance the Lerala diamond mine in Botswana. The junior miner expects to receive the remaining $5 million on or before July 31.
The funds will be applied to recommissioning Lerala, which Kimberley Diamonds expects to be a key source of
revenue.
Zhejiang may elect for one third of the loan to be
repaid in Kimberley Diamonds shares, at a 20 percent discount on
the volume weighted average price for the 20 business days prior to
conversion.
Kimberley Diamonds' managing director, Noel Halgreen, explained that once Lerala resumes production and sales, a steady revenue stream is expected for the life of the mine -- approximately 7 years -- with
"significant potential" for an extension. The junior miner still requires approximately $3.8 million more to complete the recommissioning project and Halgreen stated that the company is in discussions with
third parties to raise the required funds.
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Tags:
diamond, funding, Jeff Miller, Kimberley Diamonds, Lerala, mining
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