DiamondCorp seeks cash and skills as pressure on cash flow increases
As DiamondCorp continues to struggle to bring its new Lace mine into steady state production, the board is looking for mining and corporate finance expertise at an executive level while it strengthens its balance sheet, which has come under pressure.In the latest update on progress at the underground Lace kimberlite mine near Kroonstad in the Free State, DiamondCorp, which is listed in London and Johannesburg, further pushed back the target date for commercial production, citing difficulties with extracting enough tonnages due to drilling constraints."The slower production ramp-up means the build-up in diamond inventory will be lower than budget, resulting in either smaller diamond sales or a rescheduling of tender sales, either way increasing pressure on group cash flow," DiamondCorp said on Wednesday morning.Management is putting a convertible debt facility in place to urgently raise £500,000 for "immediate financial commitments in order to continue trading as a going concern in t...
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