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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.
Tags: diamond, funding, Jeff Miller, Kimberley Diamonds, Lerala, mining
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