JOHANNESBURG (miningweekly.com) – Southern Africa-focused DiamondCorp on Monday legally cemented a loan and supply agreement with Tiffany & Co subsidiary Laurelton Diamonds.
The diamond development and exploration company entered into an offtake agreement for diamond production from its flagship Lace mine, in the Free State, in exchange for a term loan of $6-million from Tiffany.
“[The] signing of binding agreements with Tiffany finalises the Lace funding package and allows underground development to commence this month and tailings retreatment and diamond production to recommence by March,” said DiamondCorp CEO Paul Loudon in a statement.
The proceeds of the convertible bond issue would be released from escrow, completing the funding required for the 47-level block cave development at the Lace mine.
The parties maintained the same terms for the agreements as entered into in November last year.