| Mon 28 Jul 2008, 10:00 | | DMC - DiamondCorp - US$5 Million Loan Facility |
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DMC
DMC
DMC - DiamondCorp - US$5 Million Loan Facility
DiamondCorp Plc
JSE share code: DMC & AIM share code: DCP
ISIN: GB00B183ZC46
(Incorporated in England and Wales)
(Registration number 05400982)
(SA company registration number 2007/031444/10)
("DiamondCorp" or "the Company")
US$5 MILLION LOAN FACILITY
DiamondCorp plc, the South African diamond mining company, is pleased to
announce that it has arranged a loan facility to an amount of US$5 million with
Africa Opportunity Fund LP ("AOF").
This loan completes the funding requirements for accelerated development of
Phase Two underground mining at the Company`s 74%-owned Lace diamond mine and
supplements the R26 million (US$3.3 million) of new equity placed recently with
South African institutions.
DiamondCorp CEO Paul R. Loudon said: "In these periods of difficult debt and
equity markets, I am delighted in the vote of confidence demonstrated by AOF in
the potential of the Lace diamond mine to deliver significant cashflow and
earnings over a long mine life."
AOF is a subsidiary of Africa Opportunity Fund Limited, a closed-end investment
company traded on the AIM Market of the London Stock Exchange and is also listed
and traded on the Channel Islands Stock Exchange. The AOF Group is seeking to
achieve consistent capital growth and income through investments in value,
arbitrage and special situation opportunities derived from the African
continent.
The AOF loan comprises cumulative, redeemable, secured bonds which bear interest
at a rate of 12 per cent per annum. The bonds are to be repaid over three years,
with principal payments of US$500,000 due after 18 months, US$1 million after 24
months, US$1.5 million after 30 months and the balance of US$2 million after 36
months.
The Company has no other debt currently, and has the right to redeem the bonds
at any time after the first anniversary date at between 105 and 108 per cent of
face value, plus accrued interest.
The Company will also issue AOF with 1.65 million warrants to purchase ordinary
shares in the Company at 72p per share at any time from six months to 36 months
after the issue date.
The loan is subject to shareholder approval of the warrants at a general meeting
of shareholders and in accordance with the Listing Requirements of the JSE
Limited. The date for the meeting will be set shortly and a circular will be
sent to all shareholders in due course.
28 July 2008
London
Sponsor:
Investec Bank Limited
For further information, please contact:
Paul Loudon
DiamondCorp plc
+44 20 7256 2651
Joe Nally/Liz Bowman
Cenkos Securities plc
+44 20 7397 8900
Robert Smith/Tanis Crosby
Investec Bank Limited
+27 11 286 7662
Charmane Russell
Russell & Associates
+27 11 880 3924
Jane Stacey/Jos Simson
Conduit PR
+44 20 7429 6606/+44 7922 923 306
Date: 28/07/2008 10:00:02 Produced by the JSE SENS Department.
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