In the media

DiamondCorp’s sparkle catches Tiffany’s eye for $6m boost

16 November 2012


Author: Laura Chesters

Has Tiffany & Co, the United States jeweller forever linked with Audrey Hepburn, spotted a diamond in the rough?

AIM-listed tiddler, miner DiamondCorp, has secured $6 million (£3.79 million) of development funding for its Lace Diamond mine from the famous Fifth Avenue jeweller.

The deal comes days after Harry Winston paid $500 million to buy the Ekati diamond mine from BHP Billiton as the search for commercially viable diamond mines becomes harder.

DiamondCorp jumped 0.5p to 4p. The deal allows Tiffany first right of refusal to buy stones from its Lace Mine in South Africa.

DiamondCorp got the rights to Lace in 2009 and has already secured $26.7 million of backing from South Africa’s Industrial Development Corporation.

Lace was first mined between 1901 and 1931, and is reported to have around 80% of its diamonds at gem quality.

Last month DiamondCorp raised £1 million through a placing of shares at 3.5p and broker WH Ireland has said initial production could happen during 2014 with full production by 2015. In September DiamondCorp’s first-half pre-tax losses rose to £1.6 million.

The writer owns Tiffany & Co shares.

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