DiamondCorp plc is an emerging diamond producer focused on maximising shareholder value through the development of high margin diamond production assets. The company is incorporated in the UK and the highly prospective diamondiferous regions of South Africa and Botswana are its chosen areas of operation.
21/05/12
Loan Funding Term Sheet with IDC01/05/12
Directorate Change20/03/12
LACE MINE INDEPENDENT ENGINEERING AND RESOURCE REP10/02/12
Operations Update30/01/12
Operational Update
21/05/12
This agreement marks a significant milestone in DiamondCorp's transition from developer to producer, and is bang in line with management's efforts to find a financing method which is the least dilutive for shareholders of the company.
06/04/12
There has been steady newsflow from emerging diamond producer DiamondCorp recently, including the validation of its longstanding $50 million (£31 million) project to reopen the Lace mine in South Africa’s Free State province. We find out more on the future plans of this mining junior.
21/03/12
Paul Loudon, chief executive of DiamondCorp, is preparing to talk to banks, project financiers and potential rough diamond buyers. It comes after an independent engineering report gave the green light to the company’s longstanding $50 million (£31 million) project to reopen the Lace mine in South Africa’s Free State province.
20/03/12
Shares in DiamondCorp spiked almost 10 per cent after an independent assessment endorsed its plans for the Lace diamond mine in South Africa. The engineering report compiled by outside consultants SRK found the company’s proposed block cave scheme was the most “appropriate” way of mining Lace.
30/01/12
The South Africa-based diamond miner is hopeful of arranging debt finance for nearly all the cost of developing its Lace diamond mine after talks with possible lenders.
21/05/12
DiamondCorp agrees US$33.6 mln loan terms with South Africa’s IDC for Lace mine01/05/12
DiamondCorp appoints Michael Toxvaerd as director25/04/12
DiamondCorp started as ‘buy’ with a 15 pence target price at Northland Capital20/03/12
DiamondCorp gets validation for planned Lace mine development10/02/12
DiamondCorp: Lace mine diamonds revaluation ups price 7.5 pct - UPDATE
30/03/2012
30/01/2012
04/10/2010
30/09/2010
DiamondCorp plc is an emerging diamond producer focused on maximising shareholder value through the development of high-margin diamond production assets. The company is incorporated in the UK, and operates in the long established diamondiferous regions of southern Africa.
Formed in March 2005, DiamondCorp is currently undertaking the development of the Lace underground mine to access a kimberlite pipe known to extend to depths below 850 metres. This historic mine, famed for its pink and purple fancies, was mined up until 1931 and only ever accessed to a depth of 240 metres. Lace Mine is located near the town of Kroonstad in South Africa's Free State Province. Production is expected by the end of 2011 at a rate of 1.2 million tonnes per annum. Lace's life of mine is estimated at around 25 years, and is expected to produce more than 400,000 carats per annum at peak production, starting in 2016.
In Botswana, which is one of the most prospective countries in the world for new diamond discoveries, DiamondCorp has entered into an exploration joint venture with a local company in respect of three diamond exploration licences in an area totaling 109.2km², and containing nine identified kimberlites. DiamondCorp can earn a 77.5% interest in the project by completing a definitive feasibility study on at least one of the kimberlites over a period of five years.
DiamondCorp is fully compliant with South African minerals legislation. Leading local black economic empowerment (BEE) groups Shanduka Resources and Sphere Holdings each hold a 13% in Lace Diamond Mines (Pty) Ltd, a subsidiary of DiamondCorp plc. DiamondCorp recently raised £7 million to fund the develop of Lace and the Botswana projects.
DiamondCorp plc is listed on the AIM Market of the London Stock Exchange and on the Alternative Exchange (AltX) of the JSE Limited in South Africa, under the abbreviated name 'DIAMONDCP', share code 'DMC'.
The Lace Project
History
DiamondCorp’s primary asset in South Africa is the Lace Diamond Mine, an historic operation located some 200 kilometres south-west of Johannesburg, near the town of Kroonstad in the Free State Province. DiamondCorp was awarded a mining right to the Lace property in February 2009.
Lace was first mined between 1901 and 1931, with some 4.5 million tonnes of material having been extracted down to a level of about 240 metres below surface. Approximately 750,000 carats were recovered from Lace during this period, at an average grade of 16 carats per hundred tonnes.
Geology
Two main types of kimberlite exist at Lace – an upper level Volcanoclastic Kimberlite (VK at an average grade of 24 carats per hundred tonnes) and the deeper Coherent Kimberlite Facies (CK at an average grade of around 55 carats per hundred tonnes). The Coherent Kimberlite Facies becomes volumetrically dominant at depth which confirms the old records that show higher grades in the deeper workings.
Infrastructure
The mine at Lace is serviced by a tarred road to Kroonstad and the north; electricity to the mine is provided through the Eskom grid. In 2008, DiamondCorp built a 1.2 million tonne per annum diamond recovery plant which has the capacity to treat ore for the +25 year expected mine life. There is adequate water supply to operate at this rate.
In 2011, the company completed a 4.5 x 4.5 metre decline to the 240 metre level; an old vertical shaft to the 350 metre level is being used for ventilation. At the mine, there are offices, workshops and accommodation for senior staff.
Lace Diamonds
Along with white diamonds of above average quality, historically Lace was known for its fancy pinks and purples, which had become a signature gem from this mine. While historically the bulk of Lace’s value curve has been in the 1 carat to 4 carat range, the pipe has produced a number of large stones, up to 122 carats. More than 80% of the diamonds are of gem quality.
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Euan Worthington
Non-executive Chairman
Euan Worthington was born in 1956 and has been associated with and involved in exploration, mining development, analysis and corporate finance in London for over 25 years. He has worked as an independent mining finance consultant since 2001 and is a non-executive director of African Eagle Resources plc and European Nickel plc, both listed on the AIM. Mr Worthington holds a BSc Geology (Hons) from Kings College, London, a DIC (Mineral Resources Engineering) and MSc in Mineral Production Management from Royal School of Mines, Imperial College, London.
Paul Loudon
Chief Executive Officer
Paul Loudon was born in 1962 and has more than 20 years’ experience in stockbroking, corporate finance and management of junior mining and exploration companies. He has been President of Battlefields Minerals Corporation of Toronto and non-executive chairman of BDI Mining Corp. He was head of Equities at Loeb Aron & Company Ltd, a London corporate finance house specialising in the mining sector, where he was responsible for raising considerable sums of equity capital for resource companies listed in the United Kingdom, Canada and Australia.
John Forrest
Chief Financial Officer
John Forrest was born in 1947 and is a CPA with more than 30 years’ experience in public company administration and financial management. He commenced his career with Price Waterhouse & Co and currently acts as finance director of several public companies.
George Kennedy Morton
Non-executive Director
George Kennedy Morton was born in 1946 and has more than 40 years’ experience in the banking and finance sector, including senior positions with Toronto-Dominion Bank, The Bank of Nova Scotia, Gulf International Bank, National Bank of Bahrain and Arab Banking Corporation. He is currently a non-executive director of European Islamic Investment Bank plc.
Dr Jonathan Willis-Richards
Non-executive Director
Jonathan Willis-Richards was born in 1955 and holds a bachelor’s degree in Geology from Oxford University and a Master’s Degree in Mining Geology and PhD from Cambourne School of Mines. He is internationally known for his PhD work on numerical modeling in the areas of fractured geothermal and mineralised systems, and is a founder and Managing Director of London mining corporate finance house Loeb Aron & Company Ltd.
Nicholas Allen
Non-executive Director
Nicholas Allen was born in 1937 and has worked in the mining industry for over 40 years, primarily in diamond mining and marketing, including extensive periods with Consolidated African Selection Trust Limited, D.Drukker & Zn NV, George Evans of Antwerp and Benguela Concessions Limited. He is a non-executive director of Mercator Gold plc.
Company Secretary
City Group plc
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Head Office
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Tel +44 (0) 20 3151 0970
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as at 7 Feb 2012
| Total shares in issue | 242,268,048 |
| Warrants (majority expire 2012 90p exercise price) | 5,816,666 |
| Options (majority expire 2017 135p exercise price) | 6,595,000 |
| Shares held | % Ownership | |
|---|---|---|
| European Islamic Investment Bank Plc | 39,320,555 | 26.5 |
| Legal & General Investment Management | 15,800,000 | 10.6 |
| Majedie Asset Management Limited | 15,100,000 | 10.2 |
| JPMF Natural Resources Fund | 14,884,121 | 10.0 |
| Lynville Holdings Limited | 10,071,429 | 6.8 |
Updated from company website 08/03/2012
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