On March 30, 2011, Tiffany & Co., through its subsidiary Laurelton Diamonds, Inc. as lender, entered into a U.S. $50 million amortizing term loan facility agreement with Koidu Holdings S.A., as borrower, and BSG Resources Limited, as a limited guarantor.
Koidu operates a kimberlite diamond mine in the Kono district of Sierra Leone. Koidu is required under the terms of the loan to apply the proceeds of the loan to capital expenditures necessary to expand the mine, among other purposes. In connection with the loan, Laurelton was granted the right to purchase at fair market value diamonds recovered from the mine and meeting Laurelton's quality standards.
Tiffany & Co. was advised in this matter by a team of Fasken Martineau lawyers that included Georges Dubé, Jon Holmstrom and Laura Fetter.