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DiamondCorp Subsidiary Faces Cashflow Crunch in Q1 on Drilling Delay
Nov 5, 2015 9:02 AM
By Rapaport News
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RAPAPORT... Lace
Diamond Mines, a DiamondCorp subsidiary, will be under a cashflow crunch in the
first quarter because of a delay in drilling at the Lace mine in South Africa.
Difficult
ground conditions at the site in the Free State province forced DiamondCorp to
install a “safe canopy” for workers, the UK miner said. The time taken to put this structure in place led to the interruption.
The
disruption to cashflow will coincide with the start of debt repayments,
according to DiamondCorp, which owns 74 percent of Lace. The company has held
discussions with its primary lenders and Black Economic Empowerment partners over
ways to deal with the crunch. It is seeking permission to roll interest into
principal of a loan taken from the Industrial Development Corporation until Lace returns to positive cashflow.
DiamondCorp
said in the statement it expects this request to be granted.
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Tags:
DiamondCorp, Lace Diamond Mine, Rapaport News, South Africa
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