Diamond producer and exploration company Pangea DiamondFields plc (AIM: PDF) has signed, through its wholly owned subsidiary Efidium Limited (Efidium), an unsecured short term bridging loan agreement with a substantial shareholder (Agreement). Under the Agreement, Efidium is able to borrow £370,000 (approximately US$0.6m) repayable on or before 30 June 2010 together with interest at a rate of 7% per annum.
As at 30 November, and prior to any draw down on the loan, the Company had cash reserves of US$0.3 million and unsold diamond stock valued at approximately US$0.3 million, based on current estimated prices. Efidium has since drawn down the monies available under the Agreement and will apply it into its projects on an as needed basis until the next diamond sale, anticipated in the first quarter of 2010. The sale of diamonds in Angola typically ceases each year from early December until late January.
Chief Executive Boris Kamstra said, “This additional cash underpins our expansion of Cassanguidi where we continue to make good progress toward bringing this project to full capacity by the year end. It also demonstrates the confidence which shareholders have in the longer term potential of the Company and enables Pangea to manage comfortably the burn rate in the business in what is a seasonally low time for diamond sales and production.
