PERTH (miningweekly.com) – Diamond miner Kimberley Diamonds is looking for a new buyer for its diamonds from the Lerala mine, in Botswana, after an offtake sales agreement with Alpha Capital fell through.
Alpha Capital had agreed to buy all the diamonds produced at Lerala for a period of six months, but failed to make payment for the first parcel, despite written acknowledgement that payment was due.
Kimberley said on Tuesday that it had issued Alpha Capital subsidiary Capital Diamonds with a default notice for the first parcel, requiring the company to make payments no later than October 28. No such payment was received and Capital Diamonds is now in default.
Kimberley stated that it would now sell the defaulted parcel of diamonds through an upcoming tender, and would start legal action against Capital Diamonds for damages and false representation.
Edited by: Mariaan Webb
Creamer Media Senior Deputy Editor Online
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