JOHANNESBURG (miningweekly.com) – JSE- and Aim-listed DiamondCorp planned to offer a further 20.9-million ordinary shares to eligible shareholders at 10p apiece to raise around £2-million.
The non-underwritten open offer was on the basis of one share for every 17 existing ordinary shares held in the Southern African-focused diamond development, exploration and mining company.
The proceeds would be used to buy two dump trucks to expand the flagship Free State-based Lace mine’s existing fleet; a deposit towards the purchase of a high-volume optical and X-ray waste sorter; and for additional working capital purposes.
“The board recognises and is grateful for the continued support received from shareholders and has, therefore, decided to provide an opportunity for all existing eligible shareholders to participate in a further issue of new ordinary shares, also at the placing price,” the company said in an update to shareholders.
This followed the placement earlier this month of 31.8-million new ordinary shares at 0.1p each to raise £3.18-million to fund DiamondCorp’s working capital shortfall.
DiamondCorp would make an application to the LSE and the JSE for the open offer shares to be admitted to trade on Aim and AltX respectively on July 7.