25th Nov 2013 11:28
LONDON (Alliance News) - Firestone Diamonds PLC Monday said its bank has received approval from its credit committee to provide a project debt-finance facility of up to USD82.4 million to Firestone's 75% owned Liqhobong Mining Development Company Limited.
The AIM-quoted diamond development company said Absa Bank Limited received approval for the debt facility at the Lesotho-based company, which is 25% owned by the government of Lesotho.
The company said the facility will have a total term of 6.5 years, with an 18-month draw down period for construction and with the repayment of capital occurring in the final 4.5 years of the loan term.
Firestone said initial infrastructure and capital costs at the project are expected to be roughly USD185.4 million, and the facility will support the development of a main treatment plant at the site.
The company said it is evaluating a range of options to fund the balance of capital required to complete the project, which it expects to conclude in the near future.
Firestone Diamonds shares were down 1.4% to 3.08 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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