DIAMOND PAGE — Messina fails to sell Star

An agreement between Messina Diamond (MSC.U-T) and a private company for the sale of the former’s Star diamond mine in South Africa has been cancelled.

Messina scrapped the proposed sale after South African-based International Collective Ventures failed to pay the required US$2.5-million purchase price by Jan. 8. As a result, Messina can no longer draw down on a related bridge loan facility, and must repay the outstanding US$130,000, plus a US$2 million loan, on Jan. 15.

The sale would have allowed Messina to continue operations at its namesake mine, also in South Africa, and partially fund other non-producing projects — among them, the Liqhobong open pit in Lesotho, development of which requires about US$52 million (T.N.M., Dec. 21/98).

Messina says it is pursuing alternative financing arrangements to repay its loans and provide working capital. The company notes that unless such funds are raised, all activities in southern Africa may cease.

Print

Be the first to comment on "DIAMOND PAGE — Messina fails to sell Star"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close