DiamondCorp clears refinancing hurdle

2017-02-28 08:05:00
Diamondcorp has reached formal agreement with the South African development bank, the IDC
Diamond recovered from Lace in 2015

DiamondCorp PLC (LON:DCP) has reached formal agreement with the IDC, one of its major backers in relation to its ability to lend money secured against the Lace Diamond mine in South Africa.

Following the impact of adverse weather, the Lace mine was placed into business administration, and Diamondcorp has since been involved in efforts to refinance the operation via a placing and debt restructuring.

Any new loan issued to its subsidiary will bear 13.5% interest. The loan can be made either in addition to, or as a substitute for, the placing, the conditions for which have yet to be met.

The company also said a Business Rescue Plan will be published in due course, although much is dependent upon how negotiations go with the main union, the AMCU.