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Diamondcorp to raise £1mln as first step to rescue Lace mine

Diamondcorp is Lace’s largest creditor with £36mln owed through a subordinated loan.
picture of diamonds
Phase 2 would see Lace re-open

South African-focused diamond miner Diamondcorp Plc (LON:DCP) is to raise £1mln through a placing as a first step in pulling its Lace mine out of Business Rescue.

The shares will be issued at around 4p through a bookbuilding exercise by Panmure Gordon with a warrant attached that can be exercised at 1p.

A condition of the placing is that a labour agreement is reached with the AMCU union over back wages and staff reductions, without which the miner said it faces insolvency.

If it can conclude the placing, the next phase will start to ramp up operations at Lace again.

That will see more money raised and a new management team join the company

Diamondcorp is Lace’s largest creditor with £36mln owed through a subordinated loan.

 South Africa’s IDC is the next largest creditor with an £18mln project loan.

Diamondcorp shares will remain suspended until the Business Rescue process is concluded.

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Diamondcorp Plc Timeline

Newswire
February 28 2017
Newswire
January 31 2017
Newswire
November 16 2016

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