[miningmx.com] – JSE- and UK-listed diamond development company,
DiamondCorp, said plans to breathe fresh life into the Lace diamond mine, located in
South Africa’s Free State province, have taken a crucial step forward.
This follows the completion of a due diligence into a 1.2 million tonne block cave
mining project at Lace mine, first operated in 1896, by the Government-owned
Industrial Development Corporation (IDC), which conducted the study ahead of
approving a loan to DiamondCorp. It was previously reported that the loan was for
R280m.
Eskom, the state-owned electricity utility, also said it would be able to provide power
to the project – another pre-condition to its approval.
In addition, DiamondCorp had received inquiries regarding off-take agreements from
diamond buyers, a development the company said would help it in securing loan
finance for the project.
Said Paul Loudon, CEO of DiamondCorp: “I am very pleased by the advances being
made towards finalising our IDC loan facility.’
Commenting on possible offtake agreements, Loudon said: “The company is actively
pursuing these avenues with a view to further strengthening the funding
arrangements for the Lace mine development in a manner that will provide
significant cushion and comfort for shareholders in the current challenging
macroeconomic environment.’
