Liqhobong Mining Development, 75% owned by Firestone Diamonds, has signed a revised mining lease agreement with the Lesotho Government, which owns 25% of the company, with regard to the development of the Liqhobong Diamond Mine.

As per the terms, the revised agreement is valid for an initial period ending on 30 June 2021 and can be renewed for two further periods of ten years each.

The deal represents a key milestone for Firestone which will soon establish a main treatment plant and supporting infrastructure at the Liqhobong Diamond Mine.

The company has allocated $24m in two separate funds for the project.

Firestone CEO Stuart Brown said the negotiations have been extensive and the company believe that the concluded agreement is positive for all parties.

"The Revised Mining Lease Agreement provides a framework by which Firestone and the Lesotho Government can realise its combined strategy and vision of building and commissioning the Main Treatment Plant at the Liqhobong Diamond Mine to benefit all stakeholders," Brown added.

Additionally, a placing extension has been provided to review fundraising and Absa debt facility.