JOHANNESBURG (miningweekly.com) – Aim-listed diamond producer Pangea DiamondFields (PDF) has repaid its $2-million loan from Pangea Exploration (Panex) and, in turn, received an extension of the option agreement over its South African assets.

Following its successful fundraising through an open offer, announced in December, and through the proposed allocation of funds, PDF used some of the proceeds to settle in full, the outstanding loan obligations it had with Panex.

The loan was provided to Pangea Diamonds (PDL), the holding company for PDF’s interest in its South African projects. PDF has a 74% interest in PDL, with the remaining 26% stake held by Panex.

In addition to its existing 74% interest in PDL, PDF, through its wholly owned subsidiary Efiduim, had the option to acquire the remaining 26% from Panex for a consideration of $2,175-million. This option was cancelled upon the signing of the loan agreement.

However, upon repayment of the full loan sum, Panex has granted a new option to Efidium, expiring on June 30, 2010, to acquire the remaining 26% interest for a consideration of $2,5-million.

“Repayment of the Panex loan was an important milestone for the company, after the successful capital raising through the open offer. With this obligation now behind us, the reissue of an extended option over our valuable South African assets and our working capital strengthened, PDF can continue its focus on developing near-production assets, while reducing nonessential expenditure wherever possible, to conserve our cash reserves,” said PDF CEO Brett Thompson.

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