7th Jul 2016 09:53
LONDON (Alliance News) - DiamondCorp PLC on Thursday said it will raise GBP1.5 million through the placing of 24.9 million shares at 6 pence each, with an option to receive a further GBP0.5 million.
As part the GBP1.5 million fundraise, a GBP50,000 commitment from investors was secured through AIM crowdfunding platform PrimaryBid, which PrimaryBid confirmed in a statement released shortly after DiamondCorp's.
"We found working with PrimaryBid a very effective way of raising additional funds as part of this transaction, as well as being able to broaden our investor base by tapping into the demand on the platform," DiamondCorp Chairman Euan Worthington said in PrimaryBid's statement.
The Southern African diamond mining company also granted a broker option to Panmure Gordon in order to enable it to meet any additional demand of up to a further GBP0.5 million through the issue of 3.7 million shares at the same price.
DiamondCorp said some company directors intend to participate in the fundraise by way of the broker option.
The proceeds of the placing will be used for working capital purposes following unplanned capital expenditure which led to "constrained" operational cash flow. DiamondCorp has also commenced a review of its board and management in order to deliver improved operational and financial control.
Shares in DiamondCorp were trading down 4.9% at 6.06 pence on Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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