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IDC invests R100m in Lesotho diamond mine

2nd November 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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Diamond miner Lucapa Diamond Company has secured a R100-million development facility from the Industrial Development Corporation of South Africa (IDC) for its Mothae kimberlite diamond mine, in Lesotho.

The facility will span a four years and will include a 12-month moratorium on capital repayments. Interest on the facility will be calculated at the Johannesburg interbank average rate plus 8.6%, which currently equates to a rate of 15.6% a year.

The company told shareholders last week that the IDC facility would considerably strengthen Mothae’s cash position, which, subject to the IDC loan covenants being met, would also enable the repayment of shareholder loans from Mothae to Lucapa.

Lucapa last week announced that commissioning of the 1.1-million-tonne-a-year treatment plant at Mothae had started, with first commercial diamond recoveries at the mine expected in early November.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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