South Africa focused Diamondcorp Plc (LON:DCP) has begun business rescue proceedings following the recent rainfall and flooding at the Lace mine, and a board resolution to that effect was filed.
The firm's operating subsidiary LDM will appoint a business rescue practitioner in due course, it said.
As reported on Monday, shares were suspended after the mine was flooded by heavy rainfall following two storms.
The company said that more than 90 mm of rain fell in the space of an hour at Lace, equating to almost one third of the mine’s annual rainfall.
All personnel were successful evacuated, but pumping systems were overwhelmed, and an estimated 10,000 cubic metres of rain entered the mine via the open pit and access ramps.
Given that Diamondcorp’s financial position was already under pressure prior to these storms, shares were suspended.