First West Capital has funded a multimillion-dollar expansion deal for Crossworks Manufacturing Ltd., the largest manufacturer of Canadian diamonds in the world, the bank announced Tuesday.
Last year, Crossworks, which operates out of Vancouver, Sudbury and Yellowknife renewed its exclusive purchasing rights to the diamonds from the De Beers' Victor Mine in northeastern Ontario until 2015 – valued at $35 million worth of rough diamonds per year for three years.
The funding from First West will be used to expand Crossworks' cutting and polishing manufacturing operations to accommodate growth from the renewed contract.
A decade ago, the diamond industry was barely on the radar in Canada, but Canada is now one of the world's largest diamond-producing countries.
First West Capital vice-president Kristi Miller said, "We're thrilled to be a financing partner for Crossworks as it expands operations and contributes to the growth of the Canadian diamond industry.
"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."
Last year, Business in Vancouver published an exclusive Q&A with Crossworks president Uri Ariel.
