DiamondCorp plc, has posted net losses of �3,534,940 for the year ended December 31, 2012, reduced from �4,239,146 for 2011, according to the African diamond mining and exploration company's audited results for the year.

Additional Funding for Lace

The company also reported a further US$6 million (�4.2 million) in term loan funds received from Tiffany & Co.' subsidiary Laurelton Diamonds since year end in exchange for the right to purchase, on commercial terms related to fair market value, diamond production from the company's Lace Mine in South Africa.

According to DiamondCorp, the off-take agreement is subject to any purchases by the South African State Diamond Trader and will be for stones which meet the high quality and color characteristics required to yield Tiffany-standard polished diamonds. Larger (over 10.5 carats) and special stones (any diamond worth more than $5,000 per carat) are reportedly excluded from the off-take agreement. The balance of production that Tiffany does not purchase will be marketed by DiamondCorp in Johannesburg and Antwerp at regular intervals.

Further Lace Development

The company says that with the finance package finalized in the first week of January 2013 with the signing of the Laurelton loan, underground development has resumed in earnest at Lace. More development is planned for over the next 12 months.

Furthermore, DiamondCorp says that it intends re-commissioning the Lace plant before the middle of 2013 with kimberlite tailings and will then test the market in the second half of the year with sales of the diamonds recovered. Depending on the prices achieved, the company says it will assess if it is worth increasing tailings production ahead of kimberlite being mined from underground in 2014.

Chairman Euan Worthington and Chief Executive Paul Loudon said in the results: "In our statement a year ago, we wrote about the good and bad luck that had come our way. This roller-coaster theme continued in 2012 but thanks to everyone`s perseverance, enthusiasm and support, we are now on the way to developing the 47 Level block cave at Lace.

"Once established, this should provide production for at least the next seven years, while subsequent block caves planned for the 670 and 850m levels will allow us to access the currently defined mine resource of 13.3 million carats over the next 25 years. With the pipe open at depth, Lace should operate for longer than this."