23rd Sep 2015 09:25
LONDON (Alliance News) - Firestone Diamonds PLC Wednesday said it has drawn down the first tranche of funding under the finance facility for the development of the Liqhobong mine in Lesotho.
The company had secured a USD82.4 million financing facility from Absa Bank Ltd to develop the project, and on Wednesday said it has now satisfied all the relevant conditions to draw down the first tranche of USD7.6 million. That facility carries a 10% interest rate per year.
The finance facility is part of a bigger USD225.2 million financing agreement the company completed last May to fund the building of a main treatment plant and supporting infrastructure at its Liqhobong diamond mine.
The company is hoping to use the funds available to develop the mine into production in the fourth quarter of 2016. The mine is currently 43% completed at the end of August and remains on schedule, it said.
The company said it has also drawn down USD20.0 million from the USD30.0 million eurobond facility that has been provided by Pacific Road and Resource Capital Fund VI LP.
At the end of August, the company said it had spent a total of ZAR959.0 million on the mine, which has a total budget of ZAR2.0 billion. Firestone said the project remains on budget and is fully funded through to full production ramp-up.
Firestone said it will release its results for the financial year ended June 30 on October 6.
Firestone shares were up 0.6% to 23.90 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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