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Firestone Diamonds Secures $15M Stand Debt Facility

Apr 24, 2015 12:09 PM   By Jeff Miller
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RAPAPORT...  Firestone Diamonds plc agreed to a $15 million standby debt facility with Resource Capital Fund VI L.P., subject to shareholder approval, which would satisfy one of the remaining conditions to the drawdown of its Absa debt facility.  Firestone has also agreed to a restructuring of its existing $30 million mezzanine facility, with no changes to its commercial terms.

The $15 million standby debt facility is expected to fund any potential cost over-runs or delays in respect to    the development of a main treatment plant at its Liqhobong diamond project in Lesotho. Firestone's board of directors did not currently anticipate a need to draw down on the facility. The project currently remains within budget and on schedule, Firestone confirmed. The mine is expected to achieve initial production before the middle of 2016. 

Stuart Brown, the CEO of Firestone, said, "We are pleased that we have now completed, subject to shareholder approval, one of the final conditions to access the Absa debt facility.  The standby facility provided by Resource Capital is a sign of their and Firestone's confidence in the project and further strengthens the contingency reserves -- should it be needed in the future.  We look forward to the continued performance of the project team who remain on budget and on track to achieve initial production at the end of the first half of 2016."

 

Tags: diamonds, financing, Firestone, Jeff Miller, mining
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