Namakwa Diamonds Secures Loan Deal

African-based diamond miner and explorer, Namakwa Diamonds Limited (LON: NAD) announced today it has converted US$16.03m trading debt into 66,791,667 new ordinary shares.

Approved by shareholders, the deal sees a $40m two-year secured term loan – of which $23 m has been drawn – continuing to remain available to the company.

The conversion of debt owed to Jarvirne Limited means Namakwa will now meet financial requirements to be able to take its Kao kimberlite mine in Lesotho, South Africa, into commercial production.

Commissioning of the 500tph DMS plant at Kao is underway, with the first kimberlite ore processed and first diamonds having been recently recovered. Commercial production is expected to begin in the first quarter of next year.

The company’s share price had earlier fallen 60 percent in one day, September 1st, after it findings of its strategic review revealed the extent of its credit problems.

Commenting on the latest developments, recently appointed chairman Edward Haslam described the recent tough times for the company as a “challenging period” in Namakwa’s “evolution”.

“The commissioning of the Kao kimberlite project in Lesotho is well underway, with the plant processing its first kimberlite ore this week, thereby de-risking the financial and operational burdens faced by the Company in recent months,” he said.

“The Company can now look forward to a period of stability and growth under the stewardship of Richard Collocott, as Namakwa’s Chief Executive Officer. We all look forward to a period of accretive growth for shareholder value, as Richard and the management team execute the Company’s stated strategy to develop the Kao kimberlite project.”

By 12.57, the share price had jumped 8.3 % on the news.

Namakwa Diamonds has a resource base of c.20 million carats indicated and inferred.

References
↑ ADVFN News
↑ Namakwa Diamonds Company Website

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