JOHANNESBURG (miningweekly.com) – Dual-listed Southern African diamond mining company DiamondCorp has raised proceeds of about £1-million through the placing of 25.4-million new ordinary shares at 4p apiece.
The company is also issuing about 3.14-million new ordinary shares with 3.14-million attached warrants as settlement for professional fees pursuant to the placing and in satisfaction of certain outstanding indebtedness.
Applications are being made to the LSE and JSE for the placing shares and the fee shares.
Upon admission, and subject to the conclusion of a labour agreement with the Association of Mineworkers and Construction Union (AMCU), DiamondCorp's enlarged issued ordinary share capital immediately will stand at 507-million ordinary shares.
The embattled company earlier this month announced plans to raise the £1-million to fund critical expenditure at its Lace mine.
It has stressed, however, that it needs to reach an agreement with AMCU about retrenchments.