[miningmx.com] — Diamond development and exploration group DiamondCorp Plc will place over 26 million new ordinary shares to raise about £3.48m for its kimberlite exploration activities in Botswana and working capital for its South African operations, the company said on Friday.
DiamondCorp has a joint venture with exploration company Geoperspectives in Botswana. The project covers an area of 30km2 square kilometres, containing five identified kimberlites (rock formations in which diamonds are formed).
DiamondCorp’s primary asset is the Lace Diamond Mine near Kroonstad in the Free State. The company said £1.8m of the capital raised in this placing would be used for working capital at this mine.
The company said it had the authority to issue a total of 19,693,882 ordinary shares, which would involve placing these, plus an additional 7,100,515 ordinary shares, subject to shareholder approval, at the next annual general meeting of the company, to be held on or around July 25.
DiamondCorp had applied to the LSE and JSE for the authorised shares to be listed on AIM and AltX respectively, it said.
UK news organisation Proactive Investors quoted DiamondCorp CE Paul Loudon as saying: “There were some big institutions involved, wanting to get a toehold before the big financing at higher prices and, pleasingly, it has been done at the market price, with lots of unsatisfied demand.”
