Update With Respect To Finance Facilities
AIM share code: DCP & JSE share code: DMC
(Incorporated in England and Wales)
(Registration number 05400982)
(SA company registration number 2007/031444/10)
(“DiamondCorp”, “the Group” or “the Company”)
UPDATE WITH RESPECT TO FINANCE FACILITIES
DiamondCorp plc, the Southern Africa focussed diamond mine development and exploration
company, provides the following update on various discussions with existing lenders to the
Group following the Company’s 74% operating subsidiary Lace Diamond Mines (Pty) Limited
(“LDM”) being placed in business rescue.
The Industrial Development Corporation of South Africa (the “IDC”), the primary lender to
LDM, has formally agreed to a standstill with respect to its rights under the secured project
loan to LDM until the completion of the business rescue process.
As a consequence of the IDC standstill, the Company is now engaging with the Group’s
South African and UK bondholders to achieve formal agreements for a similar standstill.
Given regulatory and timing requirements of the JSE Limited with respect to calling a formal
meeting of bondholders, it will be early January 2017 before a decision is reached.
Laurelton Diamonds, Inc., a lender to DiamondCorp Holdings Limited, has agreed to roll up its
interest until 1 November 2017 or the completion of refinancing (whichever is earlier) and
defer capital repayments until 1 March 2018, with interest being accrued during the deferral
period at the existing rate of nine per cent. per annum plus an additional two per cent. per
Finally, with respect to the £700,000 Shariah-compliant secured convertible financing facility
(the “Facility”) with Rasmala plc (“Rasmala”), the Company has repaid ZAR 5,067,000
(approximately £290,000) and Rasmala has agreed to extend the repayment of the balance of
the Facility until 30 March 2017.
The Board of DiamondCorp remain in continuing discussions with the Company’s remaining
creditors and the Business Rescue Practitioner and management of LDM remain in
discussions with all of LDM’s stakeholders pursuant to the ongoing business rescue process.
Paul Loudon, Chief Executive
Tel: +27 56 216 1300
Chris Ellis, Interim Non-Executive Chairman
Tel: +44 (0) 20 3151 0970
UK Broker & Nomad
Panmure Gordon (UK) Limited
Adam James/ Atholl Tweedie
Tel: +44 20 7886 2500
Sasfin Capital (a division of Sasfin Bank Limited)
Tel: +27 11 445 8068
SA Corporate Advisor
Qinisele Resources Proprietary Limited
Dennis Tucker/Andrew Brady
Tel: +27 11 883 6358
This announcement contains inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No 596/2014 ("MAR").
19 December 2016
Date: 19/12/2016 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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