Diamondcorp Plc (LON:DCP) has raised £1.5 mln in new money at 6p per share, a small discount to the previous closing price of 6.375p.
The news comes at a time when raising capital in the equity markets at a reasonable price is once again a realistic possibility, and it was interesting to note Diamondcorp’s accompanying commentary which said that the directors had considered various other financing options but had found them all too expensive.
“The directors examined and pursued various options for raising additional capital without further recourse to shareholders,” the company said. “However, none of the options are available at reasonable cost or in a timely manner.”
The new money will be used for working capital purposes as Diamondcorp continues its ramp up of commercial production. The company had already announced, in April 2016, that it had experienced some operational difficulties with its existing mining fleet, and these continued into June.
However, Diamondcorp has now said that the final two dump trucks that had been undergoing refurbishment are now operational and that the project remains on track to deliver 30,000 tonnes per month of diamond-bearing kimberlite ore from the mine to the plant.