| |
Diamond Core plans placing
David McKay
Posted: Fri, 08 Jul 2005
[miningmx.com] -- DIAMOND Core, one of SA’s few JSE-listed exploration firms, hopes to raise capital in a placing with SA and offshore institutions. That would follow its plan to merge its diamond properties with those of Samadi, an unlisted company.
Samadi’s projects are situated in the Middle Orange River, which typically yields large diamonds with an average size of around 2,5 carats/ stone at an average price of more than $1 000/carat.
“The aim of the capital raising is to develop Diamond Core’s projects and to buy in plant and equipment,” says James Allan, a director of QuestCo. However, one problem is that exploration and mining rights aren’t being granted quickly enough by SA’s Minerals & Energy Department.
Says Allan: “The timing and size of the placing is dependent on the issue of the relevant rights. All of the capital raised will be invested in SA and will
assist in stimulating employment and economic growth in the Northern Cape.”
Interestingly, Diamond Core was among the first in SA to receive a prospecting right – for Skeyfontein, a 140sq km diamond prospect in the Northern Cape, south-west of De Beers’ Finsch mine. Theo Botoulas, Diamond Core Resources MD, says that the prospecting right was approved on the basis of a 50:50 joint venture with the local Skeyfontein community through a subsidiary called Dikeing Mining.
Says Botoulas: “We don’t yet know whether there will be a mine on Skeyfontein, but we’re taking extra care to make sure we develop the prospect properly.”
| |
