European Diamonds (AIM:EPD) said that it had raised £3.31 million before expenses through a private placement of 16.55 million shares at 20p per share. EPD also added that it would host an Extraordinary General Meeting (EGM) to seek approval to issue 16.55 million 1/2 warrants with an exercise price of 30 pence to the placees. At the EGM as second resolution will also be put forward to allow the company to raise a further £1.855 million before expenses by placing a further 9.275 million shares at 20 pence. The additional share placing will also have a 1/2 warrant attached with a exercise price of 30p.
The funds raised will be dedicated to further studies on the Main Pipe and the completion of impact studies for the connection of the operations at Liqhobong to Lesotho's electrical power grid.
Roy Spencer, CEO added "the Company is at an exciting time and these funds will enable us to progress the next phase of work in respect of the Main Pipe. We anticipate announcing shortly the results of Pre-Feasibility Study into the viability of the Main Pipe, in respect of which independent consultants have already declared indicated resources down to 45 metres and inferred resources of 85 metres, down to a total of 130 metres from surface."