Dec 15 (Reuters) - Target Resources Plc said on Monday its marketing partner Laurelton Diamonds Inc, a unit of U.S. jeweller Tiffany & Co , had agreed to give another loan of $1.5 million to the alluvial diamond and gold miner.

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Target will use the funds to repay capital and interest on an existing loan from Laurelton and the loan is repayable after one year.

Laurelton has also extended its short-term debt facility it made available to Target earlier this year.

The loan is now repayable in equal instalments in August, September and October 2009, the Sierra Leone-focused company said in a statement.

Laurelton has also been granted an option of over 3 million shares in Target at 25 pence per share, exercisable over a three-year period, Target said.

The company said mining operations and volumes are set to proceed apace, including full operations of the new up to 200 tonne-per-hour scrubber and the dredge.

Shares of the company were indicated up 5 percent at 2.75 pence at 1455 GMT. (Reporting by Balachander Surianarayanan in Bangalore; Editing by Gopakumar Warrier)