DiamondCorp (LON:DCP) told investors it has raised £2.1mln through an oversubscribed share placing.
The cash injection will cover the group’s corporate overheads for the next two years, the company said.
It also reminded investors that the underground development programme of the Lace mine is fully project financed, for the 47 level block cave.
Underground mining at Lace remains on track and within budget, with commercial production ramp up due in the second half of next year.
In today’s placing 41.5mln new shares are being issued to new and existing, private and institutional investors. The bulk of the new shares are priced in pounds sterling, at 5p each, while 5mln shares are being issued at ZAR0.90 each (which is the equivalent of 5p at current exchange rates).
"We are delighted with the continued support of our existing shareholders and welcome some new shareholders onto our register,” said chief executive Paul Loudon.
“DiamondCorp is in the process of making the transition from mine developer to becoming a mid-tier diamond producer, and we will be providing regular updates on the progress of the development at Lace.
“We also look forward to announcing the results of drilling the additional kimberlite resources in the Bulge area of the Lace pipe before the middle of the year."