Firestone Diamonds (LON:FDI) remains on track for first production from its Liqhobong mine during the fourth quarter of 2016, it told investors, revealing it has received its first draw-down of US$7.6 million under the financing facility with Absa bank.
The diamond group has now satisfied all outstanding conditions required to draw-down the US$82.4 million project finance facility from Absa for the site in Lesotho.
That facility is part of the overall funding package to fund it through to completion.
The total cost for the facility, based on the current three month US LIBOR and including all finance and insurance related charges and costs, is around 10% a year.
The project remains within the original US$185.4 million budget and is fully funded through to production ramp up, Firestone said.
"With 43 per cent of the project completed as at the end of August 2015, Liqhobong remains on schedule for initial production to commence during Q4 2016," it added.
Firestone says Liqhobong has more than 11 million carats in reserve, while the total open pit resource contains over 17 million carats down to 393 metres.
A new plant has been designed to process 500 tonnes per hour to yield 1.1 million carats per annum over 15 years life of mine.
Firestone is set to release final results for the year ended June 30 on October 6 this year.