DiamondCorp Plc (AIM: DCP) announced that Majedie Asset Management, a boutique discretionary fund manager, has bought 14.5 million shares in the company, taking its total stake to 15.1 million shares – 10.16% of Diamondcorp’s issued share capital.
Diamondcorp’s primary asset is the Lace Diamond Mine in South Africa and through a recent placing, it raised £7.1 million (£6.6 net) at 7 pence per share to move the project closer to production.
Approximately, £4 million will be used to complete decline and sub-level caving required to extract a 30,000 tonne build sample. It will take the company approximately 12 months, and assuming the diamond grade of the bulk sample is within expectations, the company believes it will require an additional £3.5 million to move the Lace mine into full scale production - of 1.2 million tonnes per annum.
The Lace main pipe contains 33.12 million tonnes of kimberlite in indicated and inferred resources, to the 855m, at an average grade of 40.12 carats per hundred tones (cpht), for a contained resource of 13.29 million carats of diamonds.