DiamondCorp’s share price soared on news that the financially troubled company building a new mine had received expressions of interest to buy all or part of the company, prompting the board to consider a sale or merger as alternatives to its efforts to raise cash. DiamondCorp’s share price shot up 40% on Tuesday’s news, reaching 56c. Its shares on the JSE have lost 68% of their value so far in 2016. In London, the share price gained 49% to 3p. It has retreated 55% in 2016. DiamondCorp, which said on Tuesday mining had resumed at its Lace mine after a four-day safety stoppage, told investors on the same day that it had accelerated talks with a number of shareholders and third parties to raise money to continue as a going concern and that this process was at an advanced stage. An earlier attempt to secure £500,000 failed because of the 60% drop in the company’s share price last week following a raft of bad news about production delays and the temporary stoppage at the mine, pushing i...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.