Trustco dig for N$1.4 billion for the development of its Sierra Leone-based diamond mine

Trustco Group Holdings this week announced that it is in negotiations to secure N$1.4 billion for the development and expansion of its diamond mining asset in Sierra Leone, Meya Mining.

The negotiations are with an international private equity fund for a debt facility of N$822 million and an export credit facility to the amount of N$590 million, according to a statement from the company.

The combined facilities will ensure that Meya Mining’s initial mine configuration, targeting 360,000 carats per annum, is fully capitalised, thus enabling the mine to transition into commercial production within 18 months post-funding.

According to Trustco, for the first seven years, Meya Mining’s mine plan will be focused on the depletion of the Meya River domain, from where the Meya Prosperity was unearthed, as it presents the highest geo-economical potential, based on the exploration results to date.

“This is the next step in the development of Meya Mining, the world-class diamond asset of Trustco and Germinate of Sierra Leone. Once these transactions are concluded the Trustco Resources segment will soon stand toe-to-toe with Trustco Financial Services in producing value for our shareholders across the globe,” Jan Joubert, Group Head of Trustco Resources.

Trustco said the term sheets contain warranties and due diligence processes which are standard for transactions of this nature. Should the parties and their boards be satisfied with the outcome of the due diligence review, definitive agreements will be concluded.