Diamondcorp raises new funds to keep the show on the road at Lace

2017-01-23 07:59:00
Diamondcorp has raised new money to help it sort out its problems at Lace
Tunnelling work at the Lace mine

DiamondCorp (LON:DCP) has raised approximately £1 mln through a placing of just over 25.4 mln new shares at 4p per share.

 

Each share comes with an attached warrant, exercisable at 1p at any time during the period commencing on 1 November 2017 and expiring on 30 June 2019.

 

The company’s shares remain suspended, however following the impact of poor weather conditions on operations at the Lace diamond mine in South Africa, and the placing is conditional upon admission becoming effective.

 

The company must also conclude a labour agreement with the Association of Mineworkers and Construction Union that is on terms approved by the Business Rescue Practitioner and by the Board of DiamondCorp.

 

The company is also issuing just over 3 mln shares with attached warrants as settlement for professional fees and as satisfaction of certain outstanding indebtedness.