JSE- and Aim-listed DiamondCorp said last week its 74%-owned subsidiary Lace Diamond Mines had successfully drawn down the first tranche of R30-million from the R220-million Industrial Development Corporation (IDC) project finance facility for the Lace diamond mine, in the Free State.

The R220-million loan, that was agreed upon in September last year, represented almost 77% of the forecast R285-million peak-funding requirement, which included a 15% contingency, for the 47-level block-cave development at Lace, near Kroonstad.

The seven-year loan carried an interest rate of 2% over the South African prime rate, which was currently 8.5%. The interest would be capitalised for the first two years from August 15, and would be payable twice a year in arrears thereafter. There was a two-year moratorium on loan repayments.

The loan was secured over the assets of the Lace mine, and was guaranteed by DiamondCorp. It included representations and warranties from Lace Diamond Mines and DiamondCorp.

DiamondCorp stated that development at the Lace mine continued on schedule and within budget. The processing plant had been fully commissioned and the tailings retreatment was under way.

“The first 5 000 ct parcel of diamonds recovered from tailings is being prepared for marketing and sale in October,” the company said.

Meanwhile, DiamondCorp had relocated its finance function from London to the Lace mine, earlier this month, to better align the finance, administration and operational functions.

In conjunction with this move, the firm appointed former Specialised Metallurgical Projects financial manager Sanette de Wet as CFO, to replace the company’s former London-based CFO, John Forrest, and financial controller Ian Lynch, who had been with the company since its formation.

DiamondCorp confirmed that corporate and institutional stockbroker and investment bank Panmure Gordon & Co would act as the sole UK broker in addition to its current role of nominated adviser.

Further, DiamondCorp stated that in a continued effort to reduce corporate costs the company had made other savings and continued to explore further corporate overhead cost efficiencies.