Gemfields closed the following four financing facilities:

  • $15 million unsecured overdraft facility was entered into with Barclays Bank Mozambique. The facility has an interest rate of three months  LIBOR plus 4% per annum. The company issued a corporate guarantee for the facility.
  • $15 million overdraft facility with Banco Comercial E De Investimentos, in June 2016. This facility is valid for 18 months and is renewable. The facility has an interest rate of three months USD LIBOR plus 3.75% per annum. The facility is secured by a blank promissory note undertaken by MRM and a corporate guarantee by Gemfields Mauritius, a 100% subsidiary of the company.
  • $15 million finance leasing facility ith BCI in June 2016. This is a renewable facility with a drawdown period of 18 months and the amounts drawn down are repayable over a maximum period of 48 months. The facility has an interest rate of three months USD LIBOR plus 3.75% per annum.
  • $20 million financing facility with Macquarie Bank. The loan is repayable in regular instalments over a 12-month period from the date of first drawdown of the loan. The security for this loan comprises a floating charge over the jewelry and cut and polished gemstones of Fabergé (UK) Limited and the company.

The loan with Macquarie replaces the $25 million debt facility entered into in April 2015 and is used for general corporate purposes. The proceeds of the facilities with Barclays and BCI will enable MRM to finance its capital expenditure requirements for the Montepuez ruby deposit in Mozambique and provide additional working capital.

Gemfields is the operator and 75% owner of both the Kagem emerald mine in Zambia and the Montepuez ruby mine in Mozambique.