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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.
Tags: DiamondCorp, Lace Diamond Mine, Rapaport News, South Africa
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