BM Diamondcorp secures debts to finance S. Kalimantan diamond project
Thursday, March 6 2003 - 11:59 PM WIB
Canadian diamond miner BM Diamondcorp Inc. (BDI) announced Thursday that it had closed ?1,750,000 financing in unsecured convertible loan notes with UK-based investment company Ocean Resources Capital Holdings plc. Consequently, BDI's wholly owned subsidiary, Ashton-MMC Pte Limited, has been issued 3,500,000 shares of Ocean, which shares are now listed for trading on the Alternative Investment Market ('AIM') of The London Stock Exchange.
The company also closed two bridge loans for an aggregate US$350,000. These loans have been arranged to provide funds, pending receipt of the proceeds of the sale of the Ocean shares, in order for BDI to be able to expedite putting its Cempaka Alluvial Diamond Project in South Kalimantan into production this year.
BM Diamondcorp President & CEO Paul R. Loudon said the financing support provided by Ocean and the bridge financiers would allow the company to rapidly develop a long-life cashflow from the Cempaka diamond project acquired from Rio Tinto in 2001.
The Cempaka feasibility study forecasts diamond production commencing during 2003 at a rate of 47,000 carats per annum, generating cashflow of US$2.4 million per annum for the first five years from an 18-year mine life. This cashflow will in turn be used to finance an aggressive exploration program, initially aimed at discovering the hardrock source of the Cempaka diamonds. The main focus of the exploration is the 15,000ha Bobaris Block property, 45 km upstream from Cempaka, which has been extensively drainage sampled and returned two significant primary diamond indicator anomalies containing chromite, pyrope, chrome diopside and uvarovite. (alex)