Firestone has 75% stake in LMDC and rest 25% is owned by the Government of Lesotho.
Acting through its Corporate and Investment Banking division, Absa Bank has received approval from its credit committee to provide debt finance facility to LMDC for the diamond project.
The project’s initial infrastructure and capital costs are estimated to be approximately $185.4m and the facility will support the main treatment plant (MTP) development at Liqhobong.
Firestone chief executive officer Stuart Brown said the receipt of Absa Committee approval will provide facility to LMDC for the MTP development and marks a major step ahead for Firestone’s journey.
"The Board confirms that it is evaluating a range of options to fund the balance of capital required to complete the Project, which it expects to conclude in the near future, and will continue to provide updates on material developments as they occur," Brown added.
The facility, which will have a total term of 6.5 years, will have an 18 month draw down period for construction while repayment of capital occurring in the final 4.5 years of the loan term.
