Kimberley Diamonds Ltd (KDL) has announced that the first sale of diamonds recovered from its newly operating Lerala Diamond Mine in Botswana will take place through an online auction from Antwerp on June 28, 2016. The diamonds are currently being prepared and will shortly be shipped to Antwerp, the Company said in a statement. The sale will be conducted by DDA Trading BVBA (DDA).

The Company also said that it has made certain mutually agreed amendments to the sales and marketing agreement that KDL and its Botswana subsdiary, Lerala Diamond Mines Limited (Lerala), entered into with DDA on February 26, 2016. Some of the pre conditions that were to be satisfied prior to drawing on a US$ 2.8 million working capital facility have now been waived, the statement reported.

Consequently, the Facility will now be drawn down once sufficient collateral of diamonds becomes available. To date, DDA has provided a total of US$ 1.11 million in loans to Lerala. These loans were made under a separate loan agreement while the Facility was not able to be drawn down. DDA has now agreed to convert the existing loans into the Facility once sufficient collateral becomes available.The parties have also agreed for the term of the Sales Agreement to be extended from 3 years to 5 years.