Gemfields Grou. Share News (GEM)

LONDON (Alliance News) - Gemfields PLC Thursday said it has agreed to a USD15 million unsecured, 12 month working capital facility with Pallinghurst Resources Ltd.

The rare coloured gemstones mining company, with operations in Zambia and 100% ownership of Faberge Limited, said the facility is available in two separate tranches, the first tranche of USD10 million available to be drawn down between April 17 and November 30, and the second tranche of USD5 million available to be drawn down between July 15 and November 30.

Gemfields said both tranches are repayable on April 30 with no penalties for early payment.

The company said the facility has an interest rate of 3 month USD LIBOR plus 4.5% per year, an arrangement fee of 2.0%, no commitment fee and is unsecured.

Gemfields said the proceeds of the payment will be used as additional working capital and for general corporate purposes, helping to keep a consistent flow of cash given the intermittent nature of gemstone auctions.

The company said it currently had cash in hand of USD14.8 million on December 31 and an auction of predominantly higher quality emeralds held in February achieved record revenues of USD36.5 million.

Gemfields shares are down 0.6% to 39.75 pence Thursday.

By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1

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