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DiamondCorp Raises $5M, Proposes Another $3M Placement

Jun 5, 2015 11:55 AM   By Jeff Miller
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RAPAPORT...  DiamondCorp's placement of 31,837,000 new ordinary shares resulted in proceeds of approximately $4.9 million (GBP 3.18 million). The placement, which was oversubscribed, was undertaken with a range of new and existing institutional and private investors in both the U.K. and South Africa.

The company's board is also intending to place up to about 20 million new ordinary shares to raise approximately $3 million (GBP 2 million) in an open offer, which is subject to customary documentation, regulatory approval and publication of a circular to shareholders. Furthermore, the board decided not to proceed with the royalty financing facility from Acrux Resources (Pty.) Ltd.

Proceeds from the placement will be used to fund a working capital shortfall, being $2.8 million (GBP 1.8 million) as a base case and up to $4.3 million (GBP 2.8 million) in the sensitized case. Upon completion of the placement, the company will have sufficient funds to ramp up to commercial production at the Lace diamond mine, which is anticipated in the second half of 2015. Additional funds raised from the proposed open offer would be used to further enhance the working capital position.

DiamondCorp's CEO, Paul Loudon, said, "I am delighted with the strong support we have received for the company by existing and new shareholders and I look forward to updating the market on our operational developments as we ramp up to commercial production at the Lace mine."

 

Tags: capital, DiamondCorp, diamonds, funding, Jeff Miller, Lace, mining
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