The second tranche of the loan is expected to be secured by the end of July this year. Kimberley will pay interest of 5% per year and the loan will be repaid in full after two years.
Kimberley Diamonds managing director Noel Halgreen said: "This funding will allow KDL to immediately take key steps to towards the re-commissioning of the Lerala Diamond Mine, which, once re-opened, will provide KDL with significant revenue streams for the life of mine of approximately 7 years with significant potential for extension."
The company is in negotiations with third parties to raise another A$5m, which would be required to complete the recommissioning of the Lerala mine, which is about 34km north of the Martin’s Drift border post with South Africa.
The facility features five diamondferous pipes, totalling 6.66 ha in size. De Beers discovered the kimberlites in the early 1990s.
Mantle Diamonds, which Kimberley Diamonds acquired in 2014, operated the Lerala mine between February and July 2012, producing 73, 403 carats from 0.26 Mt at 28.2 cpht.
