DiamondCorp, which has come perilously close to running out of money, has terminated a formal sales process for the company or its assets, characterising approaches it received opportunistic and said they "undervalued" the firm significantly. DiamondCorp, which is developing an underground kimberlite mine near Kroonstad in the Free State and has 9.4-million carats worth $1.5bn to be mined, secured a £700,000 facility from Rasmala, a UK-based investment company, in October, meeting its immediate short-term cash needs. Rasmala has demanded a number of changes to the board, including the appointment of a new chairman, Chris Ellis, and its own finance director Neil McDougall as a nonexecutive director. DiamondCorp’s board will appoint another nonexecutive director with mining and financial skills. DiamondCorp shareholders will meet on November 16 to vote on granting the board the right to issue shares to Rasmala as part of the loan agreement and further funding. In mid-October, DiamondC...
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