News

Advanced Search

DiamondCorp Signs $7M Royalty Deal for Lace Mine

Mar 18, 2015 6:06 AM   By Deena Taylor
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share
RAPAPORT... DiamondCorp signed a $7 million royalty financing deal for its Lace diamond mine in South Africa. The company will use the proceeds of this transaction to launch operations at Lace in the second half of 2015.

Under the terms of the deal, Acrux Resources (Pty) Limited will advance the money, interest free, in return for a 3 percent net revenue royalty on the first 12 million carats of diamonds recovered from Lace after diamond marketing costs are deducted. After eight years, DiamondCorp's 74 percent owned subsidiary, Lace Diamond Mines (LDM), will have the right  to repurchase the royalty from Acrux.

"'The Royalty with Acrux will provide significant cash at the operating company level without the dilution of a large equity issue or additional debt at a time when we consider DiamondCorp shares to be trading at a significant discount to the underlying value of the Lace mine," said Paul Loudon, the CEO of DiamondCorp.

Acrux Resources is a Johannesburg-based, resource-focused investment management company and joint venture manager of the recently established alternative mining finance fund, Ata Resources Fund 1.
Tags: Deena Taylor, DiamondCorp, diamonds, Lace Mine
Similar Articles
Graff Bond Street storeGraff Hit by Ransomware Attack
Nov 01, 2021
Graff has become the victim of a cyberattack, with criminals gaining access to personal data belonging to some
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2021 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.