| Fri 23 May 2008, 17:00 | | DMC - DiamondCorp Plc - General issue of shares fo |
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DMC
DMC
DMC - DiamondCorp Plc - General issue of shares for cash
DiamondCorp plc
JSE share code: DMC AIM share code: DCP
ISIN: GB00B183ZC46
(Incorporated in England and Wales)
(Registration number 05400982)
(SA company registration number 2007/031444/10)
("DiamondCorp" or "the Company")
GENERAL ISSUE OF SHARES FOR CASH
DIAMONDCORP CAPITAL RAISING FOR INITIATION OF DEVELOPMENT OF UNDERGROUND MINE AT
LACE
At the annual general meeting of the Company held on 7 December 2007, the
requisite majority of DiamondCorp shareholders approved an ordinary resolution
authorising the directors of DiamondCorp to issue shares for cash of up to an
equivalent of 14.4 percent of the issued share capital at that date.
DiamondCorp is pleased to announce that in accordance with this general
authority, the Company has successfully placed 2,249,923 ordinary shares ("new
shares"), equating to 6.5 percent of the Company`s issued share capital, thereby
raising gross proceeds of R26,076,608 (the "private placing"). The new shares
are to be listed on the JSE Limited ("JSE") on Monday, 26 May 2008 and on the
Alternative Investment Market of the London Stock Exchange ("AIM"). The new
shares rank pari passu with the existing shares of the Company.
In terms of the private placing, DiamondCorp placed the new shares at an issue
price of R11.59 per share on the JSE; the equivalent of 77.7 pence at the
prevailing exchange rate of 14.92R/GBP on 6 May 2008 ("last practicable date").
This represents a 10% discount to the 30 day volume weighted average price
("VWAP") of 83.6 pence per share on AIM as at the last practicable date. The
shares have been placed with South African institutional shareholders, who
qualify as "public" shareholders within the meaning of paragraphs 4.25 and 4.26
of the Listings Requirements of the JSE.
Application of proceeds
The proceeds will be used to accelerate the underground development of the Lace
kimberlite mine near Kroonstad ("Phase II development"), which includes the
construction of a new 4m x 4m spiral decline to access the satellite kimberlite
and main Lace kimberlite pipes, and the dewatering and refurbishment of the
existing 6m x 2.7m vertical shaft. It is anticipated that the equity raised, in
addition to debt-financing of the trackless mining fleet, will enable
DiamondCorp to commence the haulage of kimberlite ore in the last quarter of
2008.
The managing director and CEO of DiamondCorp, Paul Loudon said: "We are
delighted that South African institutional investors have supported this equity
issue which will allow us to re-commence underground mining at Lace for the
first time since 1930 and more than 12 months ahead of our original schedule."
Financial effects
The table below reflects the unaudited pro forma financial effects of the above
mentioned general issue of shares for cash. The pro forma financial effects have
been prepared for illustrative purposes only and in terms of the Listings
Requirements of the JSE and therefore due to their nature, may not truly reflect
DiamondCorp`s financial position or results. The directors of DiamondCorp are
responsible for the preparation of the pro forma financial effects.
Before issue After issue (%)
of new shares of new Change
(i) shares (ii)
Basic loss per share (pence) 6.27 5.88 6.2%
Headline loss per share (pence) 6.26 5.87 6.2%
Net asset value per share (pence) 38.2 40.5 6.0%
Tangible net asset value per share 20.7 24.2 16.9%
(pence)
Number of shares in issue 6.5%
34,770,408 37,020,331
Notes:
i The "Before the issue of new shares" figures are based on the DiamondCorp
audited results for the year ended 31 December 2007. It should be noted
that the effect of the warrants that were converted to 66,664 new shares
during 2008, has been ignored.
ii The "After issue of new shares" pro forma column is based on the assumption
that the issue of new shares was effective on 1 January 2007. It is assumed
that the proceeds will be utilised for capital expenditure and working
capital and will therefore not affect earnings for the period. The proceeds
have been converted at the prevailing exchange rate as at 22 May 2008 of
15.09R/GBP.
London
23 May 2008
Corporate advisor
Investec Bank Limited
Sponsor
Investec Bank Limited
Enquiries:
DiamondCorp
Paul Loudon (CEO)
+44 7879 478 301
+27 82 824 6897
ploudon@diamondcorp.plc.uk
Investec Bank Limited
Gavin Hall / Tanis Crosby / Robert Smith
+27 11 286 9084 / 7534 / 7326
Russell and Associates
Charmane Russell
+27 11 880 3924
Cenkos Securities plc
NOMAD and Broker
Elizabeth Bowman / Ivonne Cantu
+44 207 397 8900
www.diamondcorp.plc.uk
Date: 23/05/2008 17:00:01 Produced by the JSE SENS Department.
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