9th Nov 2016 08:53
LONDON (Alliance News) - DiamondCorp PLC on Wednesday said it is "in the process" of drawing down the second tranche of funds, worth GBP300,000, from the financing facility provided by shareholder Rasmala PLC.
DiamondCorp secured the financing facility from Rasmala earlier this month, worth a total of GBP700,000, to facilitate its strategic review that seeks to find potential buyers for the company or another firm to merge or partner up with.
The miner said its Lace mine in South Africa continues to perform in line with expectations. An inventory of 5,000 carats from Lace is being used as security for the loan facility, and DiamondCorp said these will be processed Wednesday to allow the second tranche of funds to be drawn down.
The miner said production is on track to exceed 15,000 tonnes in November and the average grade so far has been 29 carats per hundred tonnes of ore.
DiamondCorp shares were down 7.7% to 2.10 pence per share on Wednesday.
By Joshua Warner; [email protected]; @JoshAlliance
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