Firestone Diamonds plc,   announce recently that, subject to shareholder  approval, it had agreed to a US$ 15  million standby debt facility with Resource Capital Fund VI L.P. (RCF), in order to satisfy one of the remaining conditions to the drawdown of the Absa Debt Facility.  “The purpose of the standby debt facility is to fund any potential cost over-runs or delays in respect of the development of the Main Treatment Plant,” Firestone explained.

Further, the Company clarified that “The Project currently remains within budget and on schedule to achieve initial production at the end of H1 2016 and, accordingly, the Board does not currently envisage that it will need to drawdown the US$ 15  million standby debt facility.”

Firestone has also agreed to “a restructuring of its existing US$ 30 million Mezzanine Facility with no changes to its commercial terms” the Company added. 

"We are pleased that we have now completed, subject to shareholder approval, one of the final conditions to access the Absa Debt Facility,” said Stuart Brown, Chief Executive Officer of Firestone. “The standby facility provided by RCF is a sign of their and Firestone's confidence in the Project and further strengthens the contingency reserves should it be needed in the future.  We look forward to the continued performance of the project team who remain on budget and on track to achieve initial production at the end of H1 2016."

The formalities to get shareholder approval are already underway.