15th Jan 2014 09:00
LONDON (Alliance News) - Firestone Diamonds PLC Wednesday said it had secured USD140.0 million in new financing, completing the funding it needs for the construction of the main treatment plant at its Liqhobong Diamond Mine in Lesotho.
In a statement, the diamond miner said it had agreed a deal in principle, subject to conditions including shareholder approval, for a package comprising bridge and mezzanine facilities and equity subscriptions from two new strategic investors: Pacific Road Resource Funds and Resource Capital Fund VI LP.
It said the funding, when combined with the USD82.4 million debt facility it agreed last November with Absa, would be enough to bring the plant into production in early 2016. It needed USD22.4 million for the build and commissioning.
The new package is made up of a USD10.0 million bridge facility secured against its subsidiaries, and a USD30.0 million mezzanine facility with an annual coupon of 8%. Its new investors will subscribe for 609.8 million new shares to raise a further USD60.0 million, while a placing of 813.1 million shares will raise USD40.0 million.
"Raising USD140.0 million, on top of the Absa debt facility of USD82.4 million, is an outstanding achievement for a company of Firestone's size, particularly given the current challenging mining finance environment and it represents a clear endorsement for the quality of this project," Chief Executive Stuart Brown said in a statement.
Firestone Diamonds shares were up 34.5% at 4.37 pence early Wednesday, the biggest gain on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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