Diamondcorp PLC (DCP.L), Monday said it has finalized with Laurelton Diamonds, a wholly-owned subsidiary of Tiffany & Co. (TIF) the term loan of $6 million in exchange for an Offtake Agreement for diamond production from the Lace mine in the Free State province of South Africa. The terms of the agreement remain unaltered from those previously announced, added Diamondcorp.
The development paves way for the proceeds of the convertible bond issue to be released from escrow and completes the funding required for the 47 level block cave development at Lace.
The loan is expected to come at an interest rate of 9 percent annually and must be repaid in full by the 8th anniversary of the Second Funding Date, April 10 of this year.
The Offtake Agreement is expected to give Laurelton Diamonds the right to purchase production which meets the required quality and color standards from the Lace Mine, and is said to take effect from the first funding date, January 10 this year, until the end of the life of the mine, subject to conditions.
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by RTT Staff Writer
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