In the media

DiamondCorp, Tiffany loan and supply agreement legally signed

07 January 2013

Source: www.miningweekly.com

DiamondCorp signed the contract with Laurelton Diamonds Inc. for a previously announced term loan of $6 million in exchange for an offtake agreement for diamond production from the Lace mine in the Free State province of South Africa.

The terms of the loan were originally announced on November 16 and proceeds are to be released from escrow and complete the funding required for DiamondCorp’s 47-level block cave development at Lace. DiamondCorp expects to make its first withdraw on January 10 and a second on April 10.

The offtake agreement will take effect from the first date funds are drawn and extend through the end of life for the mine. Subject to any purchases by the South African State Diamond Trader, the offtake will provide Laurelton Diamonds the right to purchase production from Lace, which meets the quality and color standards required to yield Tiffany-quality polished diamonds. Special stones and those diamonds which do not meet the Tiffany standard will be excluded from the agreement.

DiamondCorp’s chief executive, Paul Loudon, said, “Signing of binding agreements with Tiffany finalizes the Lace funding package and allows underground development to commence this month and tailings retreatment and diamond production to recommence by March.

“We are very excited to have secured such a prestigious funding partner as Tiffany and our highly experienced and committed mine development team are motivated and ready to start accessing the 13 million carats of diamonds available for recovery at Lace,” he said.

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Mineweb
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