Lerala diamond offtake deal collapses

Alpha Capital had agreed to buy all the diamonds produced at the Botswana-based mine for a period of six months, but had 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 payment no later than October 28. No such payment was received and Capital Diamonds was now in default.