BM Diamondcorp secures finance for S. Kalimantan diamond project
Friday, February 7 2003 - 12:32 AM WIB
Canadian junior mining firm BM Diamondcorp Inc. said Thursday that the company, through its wholly-owned subsidiary Ashton-MMC Pte Limited have reached agreement with Ocean Resources Capital Holdings Limited of the UK to provide ?1,750,000 in unsecured convertible loan notes to finance the commencement of production at the Company's 80 percent-owned Cempaka diamond project in SE Kalimantan, Indonesia.
The note issue has been arranged to allow AMMC to commence diamond production at Cempaka during the first half of 2003. Production is planned to commence at a rate of 47,000 carats per annum with associated credits of gold and platinum. The Cempaka feasibility study forecasts average project cashflows of US$2.44 million per annum during the first five years of production based on average diamond prices of US$175 per carat and a gold price of US$310 per ounce.
The remaining 20 percent stake in Cempaka diamond project is held by state miner PT. Aneka Tambang Tbk. (alex)