Advanced Search

DiamondCorp Agrees to Loan Deal

Feb 28, 2017 9:11 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share

RAPAPORT... DiamondCorp has reached an agreement with one of its lenders, enabling the embattled company to secure a loan against its Lace mine in South Africa as part of its business recovery efforts.

Last month, the company attempted a sale of shares to fund the care and maintenance of the Lace mine, where operations were suspended after severe flooding in November. However, it has not completed that venture, since the sale’s conditions have not yet been met.

Under the new deal, which the miner announced on Tuesday, DiamondCorp will be able to receive a loan from the Industrial Development Corporation of South Africa, either in addition to or instead of the sale of shares.

Any amounts borrowed by Lace Diamond Mines, a wholly owned subsidiary of DiamondCorp, will be subject to 13.5-percent annual interest, the miner said in its statement.

The loan agreement is conditional on DiamondCorp agreeing to terms with the Association of Mining & Construction Union. However, such an agreement may not be reached in time, and the required financing may not materialize fast enough for the company’s business-rescue process to continue, DiamondCorp warned. In that event, DiamondCorp would likely go into administration, it said.
Tags: Association of Mining & Construction Union, DiamondCorp, finance, Industrial Development Corporation of South Africa, Lace, Lace Diamond Mines, Lace Mine, mines, mining, Rapaport News, South Africa
Similar Articles
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.