Canadian diamond manufacturer Crossworks Manufacturing and Canadian financing fund First West Capital, a division of British Columbia's First West Credit Union, have inked a multi-million dollar expansion deal.
According to the lender, First West Capital will provide funding to be used to expand Crossworks' cutting and polishing manufacturing operations to accommodate growth from a rough supply contract it signed with De Beers last year regarding its exclusive access to rough diamonds from the De Beers Victor Mine in northeastern Ontario. Under the contract, Crossworks will receive US$35 million worth of rough diamonds per year for three years - cementing its position as the only company with purchasing rights for Victor diamonds until 2015.
"We are proud to be a Canadian company operating at the highest echelons of the diamond industry," says Uri Ariel, President, Crossworks Manufacturing Ltd. "As part of our growth plan, we found First West Capital to excel in providing the necessary solutions to our business needs... Notably, our partnership will enable us to continue to compete on the international stage."
"We're thrilled to be a financing partner for Crossworks as it expands operations and contributes to the growth of the Canadian diamond industry," says First West Capital Vice-President, Kristi Miller. "The diamond industry is very capital intensive. Understanding Crossworks' history, performance and people was critical, as a financing partnership is more than just a question of ratios and repayment terms. After learning more about the Crossworks management team, the diamond industry and Crossworks' existing partners, we were able to put together a financing package that allowed them to pursue this expansion opportunity."
Crossworks, the largest manufacturer of branded Canadian diamonds in the world, operates three Canadian polishing facilities in Sudbury, Yellowknife and Vancouver. It has distribution throughout North America, Europe and Asia and is a DTC sightholder, Rio Tinto Select Diamantaire, authorized partner for Argyle Pink Diamonds and a Forevermark Diamantaire.