Firestone Diamonds plc, the AIM-quoted diamond development company, has announced that, in addition to securing, subject to certain conditions precedent, the US$82.4 million (£50.3 million) Absa Debt Facility announced on 25 November 2013, it has successfully agreed in principle, subject to certain conditions precedent (which includes the approval of Shareholders), an additional funding package to build and commission the Main Treatment Plant at the Liqhobong Diamond Mine, located in the Lesotho-highlands, with expected full nameplate production in early 2016.

 This funding package comprises bridge and mezzanine facilities and equity subscriptions from two new strategic investors, being Pacific Road Resource Funds and Resource Capital Fund VI L.P. , both leading mining-focussed investment groups, together with a brokered equity placing with new and existing Shareholders, totalling, in aggregate, US$140.0 million (£85.4 million) (before expenses) (together the “Fundraise”).

“ The Board of Firestone believes that the Fundraise demonstrates the investment case for the construction of the Main Treatment Plant and supporting infrastructure at the Liqhobong Diamond Mine and emphasises the confidence and commitment of the Company’s new and existing stakeholders in the Project, the Company, its management team and, importantly, the Kingdom of Lesotho.  The Board would particularly like to welcome Pacific Road and RCF VI as major stakeholders in the Company,” said the company.

Stuart Brown, Chief Executive Officer of Firestone, said raising US$140.0 million, on top of the Absa debt facility of US$82.4 million, is an outstanding achievement for a company of Firestone’s size, particularly given the current challenging mining finance environment and it represents a clear endorsement for the quality of this project.

 “As part of this financing, I am delighted to welcome both Pacific Road and RCF VI as strategic investors in Firestone, as well as thank our existing Shareholders for their continued commitment and support.  The Company’s decision to announce a retail offering is similarly designed to give non-institutional Shareholders the ability to participate in the financing, as they have been stalwart supporters of the Firestone story,” Brown stated.

“Upon completion of the conditions precedent, Firestone will be fully-funded to fulfil its strategy of building a diamond mine capable of producing 1 million plus carats per annum.”