Rex Diamond closes financing to repay US$3-million loan

Rex Diamond Mining (RXD-T) has raised US$3 million in a debt financing with a group of European investors.

The deal consists of a US$2-million interest-free note that can be converted into 2 million Rex shares until June 1, 1999, plus a US$1-million interest-free loan payable by mid-December 1999.

The company will use the proceeds to repay an existing debenture worth US$3 million.

Rex holds five advanced diamond exploration properties in Sierra Leone. In addition, subsidiaries of the company operate in South Africa, Mauritania, Liberia and Belgium. Total cash costs at operations in South Africa have been reduced through a 50% reduction in workforce and a change in mining methods.