DiamondCorp raises about £1m in share and warrant placement
Cash-strapped DiamondCorp, which is building a new underground mine near Kroonstad in the Free State, has raised about £1m in a share and warrant placement and paid creditors in a similar way. The money, along with an insurance payout, will give DiamondCorp enough cash to keep working until mid-April at which time it will conduct a second-capital raising exercise. DiamondCorp, whose shares trade on the JSE and London’s Alternative Investment Market, has run into difficulties at its Lace mine, with a series of setbacks last year culminating in the temporary suspension of mining and putting further strain on its balance sheet. Trade in DiamondCorp shares is suspended and Lace is in a business rescue programme managed by Deloitte & Touche. DiamondCorp told the market earlier in January about the placing to recapitalise the company and on Monday said it had conducted the placement of 25.4-million shares at four pence a share, which each come with a warrant that can be exercised for 1p b...
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