Diamondcorp Plc Tiffany Loan and Diamond Offtake Agreement Signed (8925U)
January 07 2013 - 2:00AM
UK Regulatory
TIDMDCP
RNS Number : 8925U
Diamondcorp Plc
07 January 2013
7 January 2013
NOT FOR DISTRIBUTION IN OR INTO AUSTRALIA, CANADA, JAPAN OR THE
UNITED STATES OR ANY OTHER JURISDICTION IF TO DO SO WOULD
CONSTITUTE A VIOLATION OF THE LAWS OF SUCH JURISDICTION
DiamondCorp plc
JSE share code: DMC & AIM share code: DCP
ISIN: GB00B183ZC46
(Incorporated in England and Wales)
(Registration number 05400982)
(SA company registration number 2007/031444/10)
("DiamondCorp", "the Group" or "the Company")
Tiffany Loan and Diamond Offtake Agreement Signed
DiamondCorp, the Southern African diamond development and
exploration company, is pleased to announce that it has signed
binding legal agreements with Laurelton Diamonds, Inc., a
wholly-owned subsidiary of Tiffany & Co. (NYSE:TIF) for a term
loan of US$6,000,000 ("the Loan") 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 are unchanged from those announced on 16
November 2012. The finalisation of the Loan allows the proceeds of
the convertible bond issue (as announced on 17 December 2012) to be
released from escrow and completes the funding required for the 47
level block cave development at Lace.
The Loan will be drawn down by DiamondCorp Holdings Limited, a
wholly-owned subsidiary of the Company, in two equal tranches on 10
January 2013 ("First Funding Date") and 10 April 2013 ("Second
Funding Date"). The Loan will bear annual interest at 9% and must
be repaid in full by the 8th anniversary of the Second Funding
Date. There will be no payments of interest or principal for the
first three years of the Loan, with interest accumulating during
this period and added to the principal amount to be amortised and
repaid. The Loan can be repaid early in part or in full without
penalty.
The Offtake Agreement will take effect from the First Funding
Date until the end of the life of the mine. Subject to any
purchases by the South African State Diamond Trader, the Offtake
Agreement will give Laurelton Diamonds, Inc. the right to purchase,
on commercial terms related to fair market value, production from
the Lace Mine which meets the quality and colour 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 Offtake Agreement.
DiamondCorp's CEO, Paul Loudon said: "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.
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."
Contact details:
DiamondCorp plc
Euan Worthington, Chairman
Tel: +44 1962 760 266
Paul Loudon, Chief Executive
Tel: +44 20 3151 0970
SP Angel Corporate Finance LLP
AIM Nomad and Broker
Ewan Leggat/Laura Littley
Tel: +44 20 3463 2260
Ocean Equities Limited
Guy Wilkes
Tel: +44 207 786 4370
PSG Capital (Pty) Limited
John-Paul Dicks
Tel: +27 21 887 9602
Russell & Associates
Charmane Russell/Marion Brower
Tel: +27 11 880 3924
This information is provided by RNS
The company news service from the London Stock Exchange
END
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