JOHANNESBURG (miningweekly.com) – JSE- and Aim-listed Diamondcorp on Wednesday reported that it was no longer in discussions regarding a possible offer for its entire issued share capital.

The company also reported that it had been able to allocate existing cash resources to fund an interest payment, which was due on Wednesday, making it unnecessary for the company to consider other financial proposals.

At the end of September, Diamondcorp had warned that it was assessing a number of finance proposals, which it would require to meet its future financial commitments.

The deterioration in diamond prices in the last part of 2008 had prompted the company to stop tailings retreatment operations at its Lace mine, in South Africa’s Free State province, which negatively impacted on its cash flow.

The diamond-miner then decided to raise finance to ensure the ongoing development of the underground mine.

The company subsequently received a number of finance proposals, ranging from debt and convertible debt to equity.

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