In the media

DiamondCorp secures $6m loan to develop Lace mine in South Africa

19 November 2012


Southern African diamond development and exploration company DiamondCorp has signed an agreement with Laurelton Diamonds for a $6m term loan.

Consequent to the transaction DiamondCorp will supply diamonds produced from the Lace mine in South Africa to Laurelton.

Funds secured from the loan will allow DiamondCorp to develop the 47 level block cave at Lace through its 74%-owned subsidiary Lace Diamond Mines.

The Offtake Agreement for diamond production is effective from the first funding date until the end of the mine's life.

Laurelton Diamonds will now secure the right to purchase diamonds produced from the Lace Mine that meet standards for Tiffany at commercial terms related to fair market value.

Special stones and diamonds that do not meet the Tiffany standard will be excluded from the Offtake Agreement.

Commenting on the trasnaction DiamondCorp CEO Paul Loudon said, "Their decision to provide project finance in return for access to a long-term supply agreement is testament to the quality of the Lace diamonds and an expression of confidence in DiamondCorp's development strategy."

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