[miningmx.com] — DIAMONDCORP will need to raise additional funds during the next 12 months, but CEO Paul Loudon does not anticipate any problems in finding the money.
The company lost ₤1m in the six months to end-June (previous comparable period – ₤1.5m loss).
Loudon said in his interim statement that “during the next 12 months the group will be in mine-development mode and forecasts indicate that the group will have insufficient financial resources to accomplish all its development goals and meet all its financial obligations over the next 12 months”.
“The raising of additional finance is deemed to be a material uncertainty which casts significant doubt over the ability of the group as a going concern.’
But Loudon added: “After making enquiries, given the successful ₤3.48m fundraising in 2011 which was well-supported by the existing shareholder base, assuming that the group adheres to its development plan, the directors have a reasonable expectation that additional funds will be available within the next 12 months.’
DiamondCorp is currently determining grade and carat value at the top of the first mining block at the Lace mine in the Free State and expects to have this information available during October.
The company has also started a mini-bulk testing programme on two kimberlite pipes located near De Beers Jwaneng mine in Botswana and expects the results before the end of the year.
