The company has appointed an undisclosed international bank to lead the fund raising process. The bank has undertaken due-diligence process that is anticipated to continue for next six months.
In addition, the company is also engaged in discussions to procure a large forward sale agreement to source additional finance for the facility.
Firestone Diamonds, however, is exploring ways to optimize the plant and to reduce the capital requirements. The move is expected to narrow down equity funds required to fully finance the development.
Meanwhile, the company has signed a $6m forward sale agreement pertaining to its smaller stones in a bid to strengthen its working capital position besides providing the company with an immediate cash injection.
Commenting on the developments, Firestone non-executive chairman Lucio Genovese said that if it successfully concludes its financing efforts, it would reduce the equity required to fund the treatment facility at Liqhobong.
"The recent signing of the US$6 million forward sale agreement is also a very positive step in strengthening the Company’s cash and working capital position in a way that avoids equity dilution in these markets," added Genovese.
