DiamondCorp PLC said following the recently announced private placing to European Islamic Investment Bank PLC (EIIB) and further share buying on the market, the bank has become its largest shareholder with a 26.09 percent stake.
DiamondCorp announced on November 7 2008 it had placed 4 million ordinary shares at 45 pence each to EIIB for gross proceeds of £1.8 million.
EIIB bought a further 2,720,555 shares on the market from a number of institutions and investors. It previously held a 9.37 percent stake in the South African based diamond producer with listings on the Johannesburg Stock Exchange and London’s AIM.
DiamondCorp managing director Paul Loudon said: “(Our) plan to grow as a mid-tier diamond producer in the years ahead has the potential to benefit from EIIB’s access to capital and backing by very large Middle Eastern investors.”
Robin Henshall, head of Private Equity and Corporate Advisory at EIIB, was cited as saying: “We are impressed by the experienced management team and have confidence in the continuing development at DiamondCorp’s Lace kimberlite pipe, which is more than a year ahead of schedule. We look forward to underground mining commencing by the end of this year.”