Kimberley Diamonds has secured a further A$3.2m ($2.3m) loan from China's Zhejiang Huitong Auction for recommissioning of its Lerala diamond mine in Botswana.
The loan is part of the agreement Kimberley signed with Zhejiang Huitong Auction, which has agreed to provide a A$10m ($7.3m) funds.
It brings the total funds received by Kimberley so far to A$8.2m ($6m). The company expects to receive the remaining part of loan later this month.
Kimberley said after reopening, the Lerala mine will become its key source of revenue. The company noted that it continues negotiations with several parties in relation to working capital facility for the plant’s operation.
The mine is about 34km north of the Martin’s Drift border post with South Africa.
The facility features five diamondferous pipes, totaling 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.