2nd Dec 2015 16:53
LONDON (Alliance News) - Diamond miner DiamondCorp PLC on Wednesday said it has secured formal approval to reschedule its loan with the Industrial Development Corporation of South Africa and said it has proposed raising GBP4.0 million via a share placing.
The company said it has secured approval from the IDC to reschedule its ZAR220.0 million loan held by its Lace Diamond Mine Pty Ltd. Under the terms of the new agreement, ongoing capitalisation of interest previously payable in 2016 will be carried out, while no capital repayments will be made before the start of 2017.
Interest and capital repayments on the loan will now be payable on a quarterly basis from the first of February 2017.
In addition, DiamondCorp said it has proposed raising up to GBP4.0 million via a share placing, to be conducted via a bookbuilding process which will begin immediately. The proceeds will be used to fund a production ramp up as the Lace Diamond Mine in South Africa, with a target for the site to be operationally cash-positive from the third quarter of 2016.
DiamondCorp closed at 7.3 pence on Wednesday, down 1.0%.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
DCP.L