Firestone Diamonds arranges $30 million 8% mezzanine facility

By Lisa Kerner

Charlotte, N.C., Jan. 15 - Firestone Diamonds plc secured $100 million of project funding from two new strategic investors, Pacific Road Resource Funds and Resource Capital Fund VI LP.

The funding package includes a $30 million mezzanine facility with an annual coupon of 8% and a $10 million bridge facility, according to a company news release.

In addition, Pacific Road and Resource Capital each will subscribe for 609,830,467 new ordinary shares at a price of 3p apiece to raise a total of $60 million.

Pacific Road and Resource Capital will each receive warrants to subscribe for 243,932,186 new ordinary shares at a price of 3.75p, representing a 25% premium to the placing price.

Also, 813,107,289 new ordinary shares will be issued to new and existing shareholders at the placing price to raise $40 million.

The funding requires shareholder approval.

Proceeds, along with a previously announced $82.4 million debt facility, will be used to build and commission the main treatment plant at the Liqhobong Diamond Mine, located in the Lesotho highlands.

Leeds, England-based Firestone is a diamond mining and exploration company with operations in South Africa and Botswana.

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