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Kimberley Diamonds Secures Loan to Bring Lerala to Production

Mar 1, 2016 3:00 AM   By Rapaport News
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RAPAPORT... Kimberley Diamonds has secured financing to bring the Lerala Diamond Mine in Botswana to production, with mining scheduled to start in March this year. Diamond production is anticipated in April and the first sale in June.

In a statement February 26, the miner announced a $2.8 million working capital loan facility, which complements a rights issues planned for March to April that is expected to raise $2.9 million (AUD 4 million).

Under the terms of the loan facility, Kimberley and its Botswana subsidiary Lerala Diamond Mines have appointed Belgium-based diamond auction house DDA Trading BVBA as the exclusive sales and marketing agent for stones produced at the mine. This exclusivity is for three years with an option to extend it for another two years.

Lerala will also supply DDA with run-of-mine diamonds valuing at least $5 million at an agreed discount to valuation.

To date, Kimberley has raised a total of $9.3 million (AUD 13 million) through a debt facility with Zhejiang Huitong Auction Co and $1 million under a diamond sales agreement with Restwest Investments.
Tags: Botswana, Kimberley Diamonds, Lerala, Lerala Diamond Mine, mining, Rapaport News
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