In the media

DiamondCorp shares advance on Tiffany loan deal

07 January 2013

Source: www.proactiveinvestors.com.hk

Shares in DiamondCorp (LON:DCP) (DCP) were up 13% in early trade after the miner confirmed it agreed a binding US$6mln loan deal with upmarket jeweller Tiffany & Co.

This almost wraps up the funding required to develop operation in South Africa’s Free State and also provides DCP with a blue-chip off-take partner.

The company can now collect the proceeds from a convertible bond issue flagged last month, which is the final piece in a funding jigsaw that also includes a US$27mln loan from South Africa’s Industrial Development Corporation.

At 9.45am, the stock was changing hands for 5.82p (up 0.44 pence), valuing DCP at £14mln.

City broker Northland reckons the shares are worth 11 pence.

It said: “The finalisation of this [Tiffany] loan allows the proceeds of the convertible bond issue to be released from escrow and completes the funding for the development of the 47 level block cave at the Lace Mine. ”Underground development is expected to commence this month and tailings retreatment and diamond production is anticipated to recommence by March 2013.

“Tiffany is an important long term partner for DiamondCorp and the agreement demonstrates that a major player in diamond industry believes in the strength of the Lace project.”

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Mineweb
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Miningmx
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Minesite
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Resource Investor
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