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DiamondCorp Raises $6M in Placement, Reschedules Loan
Dec 6, 2015 11:08 AM
By Rapaport News
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RAPAPORT... South African miner DiamondCorp has raised $6
million (GBP 4 million) from a share placement, according to a statement December 3. The funds
will be used to finance the company’s production ramp-up through to it becoming
cash flow positive from the third quarter of 2016. The
development comes after drilling at the company’s Lace mine was delayed by
difficult ground conditions, resulting in a cash flow crunch.
Chairman Euan Worthington, chief executive
officer Paul Loudon and Jonathan Willis-Richards, one of the group's
non-executive directors, all participated in the placement.
Meanwhile, DiamondCorp has reached a deal with
its lender, the
Industrial Development Corporation of South Africa, to reschedule an
existing $15.3 million (ZAR 220 million) loan to its operating subsidiary Lace
Diamond Mine, according to a separate statement December 3.
The new arrangement
includes ongoing capitalization of interest previously payable in 2016 and no
capital repayments until February 2017. The interest rate will increase from 2
percent plus South African prime per year to 3.2 percent plus South African
prime from January 31, 2016. South African prime is currently 9.75 percent per
year. The loan principal and capitalized interest will increase from $17.9
million to $21.6 million.
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Tags:
DiamondCorp, mining, private placement, Rapaport News
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