Firestone Diamonds raises funds for treatment plant at Liqhobong

15th Jan 2014 12:29

AIM-listed Firestone Diamonds has agreed an additional funding package to build and commission the main treatment plant at the Liqhobong Diamond Mine. The £85.4m package is in addition to the £50.3m debt facility from Absa bank announced in late November. The additional package, which was raised via bridge and mezzanine facilities, equity subscriptions and a brokered equity placing, means the company is now able to bring the plant into production. The equity placing was made with two new strategic investors, Pacific Road and RCF VI, which each subscribed for 609.83m shares at 3p each. A further 813.1m shares were issued to new and existing shareholders at the same price. Chief Executive Officer Stuart Brown said the fundraising was "an outstanding achievement for a company of Firestone's size", particularly given the current challenging mining finance environment, and one that "represents a clear endorsement for the quality of this project". He added: "Upon completion of the conditions precedent, Firestone will be fully-funded to fulfil its strategy of building a diamond mine capable of producing 1m-plus carats per annum."NR