In the media

DiamondCorp raises £2.1m through oversubscribed placing

28 March 2014

Source: Mining Weekly

Author: Tracy Hancock

JOHANNESBURG (miningweekly.com) – South African diamond development, exploration and mining company DiamondCorp on Friday announced that it had raised £2.1-million through an oversubscribed placing of 41.5-million new ordinary shares.

The net proceeds of the placing would be used to fund corporate overheads over the next two years and provide general working capital.

The company stated that the development of its 74%-owned Lace diamond mine, in the Free State, had been fully project financed for the 47-level block cave, adding that underground mining remained within budget and on track for commercial production ramp up in the second half of 2015.

“DiamondCorp is in the process of making the transition from mine developer to becoming a midtier diamond producer. We are delighted with the continued support of our existing shareholders and welcome some new shareholders onto our register,” DiamondCorp CEO Paul Loudon said in a statement.

The 41.5-million new ordinary shares issued comprised 36.5-million UK placing shares, placed through British corporate and institutional stockbroker and investment bank Panmure Gordon at a price of 5p each, and five-million South African placing shares subscribed through banking and financial services group Sasfin Capital at 90c each.

The price per UK placing share and SA placing share represented discounts of 7% and 10.9% to the closing mid-market price on the Aim and the AltX, respectively, on March 27.

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