Firestone Diamonds Receives Liqhobong Finance of up to $82.4M

(IDEX Online News) – Firestone Diamonds plc reports that Absa Bank Ltd has agreed to provide a project debt finance facility of up to $82.4 million to Liqhobong Mining Development Company Ltd (LMDC).

LMDC, which is owned 75 percent by Firestone and 25 percent by the government of Lesotho, owns 100 percent of the Liqhobong diamond mine in Lesotho.

The initial infrastructure and capital costs for the project are estimated to be approximately $185.4 million and the Absa Bank facility will support the development of the main treatment plant at Liqhobong.

The facility will have a total term of 6.5 years, with an 18-month draw down period for construction and with the repayment of capital occurring in the final 4.5 years of the loan term.

The company is required to fund its contribution to the project, being the balance required to complete the project, prior to first draw down of the facility.

Stuart Brown, incoming Chief Executive Officer, said: “Receipt of Absa approval to provide LMDC with the facility for the development of the MTP at Liqhobong, is a major step forward. In addition, it marks an independent endorsement of Firestone and our project, in what we believe has been one of the most challenging periods that mine funding has encountered in recent years. The approval underpins the management’s approach and commitment to developing Liqhobong and realising the true value of this asset for our shareholders.

"The Board is evaluating a range of options to fund the balance of capital required to complete the project, which it expects to conclude in the near future, and will continue to provide updates on material developments as they occur.”