28th Mar 2014 10:45
LONDON (Alliance News) - DiamondCorp PLC Friday announced that it has placed 41.5 million shares in the company at a price in order to raise gross proceeds of roughly GBP2.1 million.
The Southern African diamond development, exploration and mining company said the placing comprises of 36.5 million shares at a price of 5 pence each through Panmure Gordon Ltd and 5 million South Africa placing shares at ZAR0.90 each, subscribed through Sasfin Capital.
The company said its price per UK and South African placing share represents a discount of 7.0% and 10.% respectively to the closing mid-market price on AIM and AltX on March 27.
DiamondCorp added that the net proceeds of the placing will be used to fund corporate overheads over the next two years and for general working capital purposes.
The company said that development of its underground mine at Lace in South Africa has been fully project financed for its 47 level block cave, and underground mining remains within budget and on track for commercial production ramp up in the second-half of 2015.
DiamondCorp shares were up 9.8% to 5.90 pence, putting it in the top AIM risers Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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