DiamondCorp Plc, a London-based diamond mining company, saw its shares surge today following news that it had secured funding for its Lace mine in South Africa. The news sent the company’s stock up nearly 10 percent in early trading, as investors responded positively to the news.
The Lace mine, located in the Free State province of South Africa, is one of the world’s largest diamond producers. It is estimated to contain over 4.5 million carats of diamonds, making it a highly sought-after asset for diamond miners. The funding for the mine comes from a consortium of investors led by the International Finance Corporation (IFC), a member of the World Bank Group.
The IFC will be providing a loan of up to $125 million to finance the development of the mine. The loan is part of a larger $250 million package that includes additional financing from the Industrial Development Corporation of South Africa (IDC) and the Development Bank of Southern Africa (DBSA). The package also includes a $50 million equity investment from the IFC. In addition to the financing, the IFC will also provide technical assistance to DiamondCorp to support the development of the mine.
This will include assistance in the areas of environmental and social management, health and safety, and corporate governance. The loan is expected to help DiamondCorp expand its operations at the Lace mine, as well as help it to develop new projects in the region. DiamondCorp CEO Stuart Brown said that the loan was a significant milestone for the company and would provide it with the necessary funding to unlock the full potential of the Lace mine.
“This financing package will enable us to expand our operations at the Lace mine and to develop new projects in the region,” he said. “It will also help us to create new jobs and contribute to the economic development of the Free State province.” The loan is part of a broader effort by the IFC to promote private sector investment in African countries. The IFC has committed over $1 billion to the African continent in the last five years, with a focus on supporting the development of infrastructure, energy, and financial services. The IFC’s investment in DiamondCorp is part of its commitment to promote responsible mining practices in Africa. “We are pleased to be supporting DiamondCorp as they develop their operations at the Lace mine,” said IFC Vice President for Africa, Makhtar Diop.
“We believe that this project will help to create jobs, generate economic growth, and promote responsible mining practices in the region.” The loan is expected to close by the end of the year, and DiamondCorp is expected to begin operations at the Lace mine in the first half of 2021. The news of the loan sent DiamondCorp’s share price soaring, as investors responded positively to the news.
The company’s stock price has risen nearly 10 percent since the announcement, and is now trading at its highest level in over a year. The news is also a positive sign for the diamond mining industry, which has been struggling in recent years due to a decline in demand for diamonds. The funding for the Lace mine is expected to help DiamondCorp to expand its operations in the region, and could help to revive the industry as a whole.
