Aim-listed BlueRock Diamonds has raised £575 000 before expenses through the issue of 191.67-million shares at a price of 0.3p a share.
The funds will be used to continue the development of the Kareevlei mine, in the Kimberley region of South Africa.
The recent recovery of large, high-quality gem diamonds has encouraged the company to look at ways to fast-track its production targets.
Further investment in the crushing circuit will be needed to achieve this and discussions are under way with industry partners.
A number of options are being considered, including outsourcing and external funding from industry partners.
“The quality of Kareevlei diamonds has been highlighted by the recovery of several high-quality, high-carat stones, the latest of which was a 16.28 ct diamond recovered on Friday,” BlueRock CEO Adam Waugh said in a statement on Monday.