Firestone Finds Funds to Develop Diamond Mine

Diamond company Firestone 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. LMDC, which is owned 75% by Firestone and 25% by the government of Lesotho, owns 100% 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.

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