Namakwa Diamonds Secures $10M Loan

Namakwa Diamonds secured a $10 million loan from Sputnick Limited as it faces ‎operational challenges at its Kao diamond mine development in Lesotho. ‎

Namakwa DiamondsThe company explained that its current $40 million loan facility with Jarvirne Limited is ‎insufficient to meet the group’s short-term funding requirements due to operational ‎challenges at Kao and the delayed execution of a potential sale of non-core assets. ‎Namakwa has drawn $33.2 million from the Jarvirne facility so far and an additional $2 ‎million was made available to the company earlier in April. ‎

Issues pertaining to the secondary crushing circuit for a processing plant at Kao restricted ‎short-term treating of high-grade ore during the ramp up to phase one of commercial ‎production at the mine. As a result, the processing plant is expected to reach its design ‎capacity of 500 tonnes per hour in June 2012.‎

The delays have caused Namakwa to reduce its production target at Kao to 170,000 ‎carats for the fiscal year that ends on August 31, 2012, from its previously stated target of ‎‎200,000 carats. The company is expecting to be net cash generative positive in July ‎‎2012. ‎

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