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Construction to start at Lerala Mine in Botswana by early 2007
DiamonEx Limited has signed an agreement with Babcock & Brown Australian Infrastructure Pty Ltd, to provide the major funding to build and commission DiamonEx Limited's Lerala diamond mining project in Botswana.
DiamonEx is developing Lerala at an estimated capital cost of approximately A$20 million. Announcing the funding, DiamonEx Managing Director Dan O'Neill said: "We are delighted that Babcock & Brown has decided to provide the principal funding for DiamonEx's foundation project at Lerala.
Under the agreement, Babcock & Brown will invest A$2.5 million in a placement of DiamonEx shares at 24 cents per share and, subject to due diligence, other conditions precedent and DiamonEx shareholder approval, up to A$13 million in a four-year convertible loan facility.
The balance of the project's capital cost and working capital requirements will be separately bank funded through a senior debt facility currently being finalised. It is planned that Lerala will produce 330,000 carats a year for 10 years based on current resources. The Lerala project is already well advanced. The Botswana Government granted DiamonEx a licence to mine in September 2006, and a permanent camp has been established at the site.
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