Diamondcorp (LON:DCP) today revealed further plans to help fund the development of the Lace mine.
It is raising £1 million gross from a share placing, issuing 28.5 mln new shares at 3p each, and it is also setting up a £10 million equity line facility with specialist financier Darwin Strategic.
The company also revealed it is in advanced talks about a potential diamond offtake agreement and/or royalty over production from the Lace mine - either would be a boost to the coffers.
Meanwhile it says that, as previously announced, its brokers in London and South Africa are working on a bond issue which is expected to satisfy the majority of its funding requirement.
Chief executive Paul Loudon and chairman Euan Worthington have each committed to investing £100,000 in the bonds. The bonds are being sold in minimum units of £50,000 and they carry a 14% fixed coupon.
"We are delighted with the support of new and existing shareholders in this equity placing at a time of difficult market conditions,” Loudon said in a statement.
“We are also very pleased to have received the support of Henderson Global Investors and Darwin Strategic in offering a funding structure to assist us in fulfilling the initial drawdown conditions of the IDC project loan.
“We look forward with much excitement to restarting underground development of the Lace mine."