| Wed 19 Oct 2011, 8:01 | | DMC - DiamondCorp plc - Placing to raise GBP2.05 million |
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DMC
DMC
DMC - DiamondCorp plc - Placing to raise GBP2.05 million
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")
Placing to raise GBP2.05 million
The Board of DiamondCorp, the Southern African diamond development and
exploration company, is pleased to announce that it has placed 31,600,000 new
ordinary shares of 3 pence each in the Company ("the Placing Shares") at a
price of 6.5 pence per share ("the Placing Price") to raise, in aggregate,
GBP2.05 million gross proceeds for the Company (approximately GBP1.9 million
net of expenses) ("the Placing"). The Placing Price represents a discount of
8.77 per cent. to the closing mid-market price of 7.125 pence on 18 October
2011.
Use of Proceeds
The net proceeds of the Placing will be used to retire the debt and accrued
interest owed to Africa Opportunity Fund LP and to fund corporate overheads
and general working capital as follows:
Use Amount
GBP million
Retire the debt and accrued interest owed to Africa 1.30
Opportunity Fund LP
Working capital 0.60
Directors` shareholdings
Certain directors of the Company have participated in the Placing as follows:
Director name Existing Number of Total Percentage of
shareholding Placing shareholding the issued
in the Company Shares following the share capital
subscribed Placing of the Company
for in the as enlarged by
Placing the Placing
Paul Loudon* 2,088,052 300,000 2,388,052 0.99%
Euan 190,000 307,000 497,000 0.21%
Worthington
Jonathan 2,656,666 80,000 2,736,666 1.13%
Willis-
Richards **
* All of the Ordinary Shares in which Paul Loudon is beneficially interested
are held by Green Dragon Nominees Pty Limited, a company with which he is
connected.
** 2,456,666 of the shares in which Jonathan Willis-Richards is beneficially
interested are held by Loeb Aron & Company Limited, a company with which he
is connected.
Placing Shares
Application has been made to the London Stock Exchange and the JSE for the
Placing Shares to be admitted to trading on AIM and AltX. It is expected
that Admission will become effective and that trading in the Placing Shares
will commence on AIM and AltX at 8.00 am UK time on 25 October 2011. The
Placing Shares will rank pari passu with the Company`s existing issued
ordinary shares.
Following the issue of the Placing Shares there will be a total of
242,268,048 ordinary shares of 3 pence each in the capital of the Company in
issue.
Commenting on the placing, DiamondCorp`s CEO Paul Loudon said: "I am
delighted that with the support of our shareholders, DiamondCorp will now be
completely debt free. This fundamental strengthening of our balance sheet
comes at the same time as we have demonstrated that our flagship asset, the
Lace mine in South Africa, will support a +25-year mine life, producing
almost 450,000 carats per annum at peak production and generating life-of-
mine cashflows of almost GBP500 million.
"Markets for resource stocks are experiencing a difficult period at the
moment, and financing the whole of the Lace mine development from equity
capital cannot be done without an unacceptably high dilution to existing
shareholders. Therefore management will now turn its attention to
investigating sources of project finance for Lace in a form which provides
the least dilution and maximum leverage for existing shareholders.
"At the same time, large diameter drilling of the Company`s exciting
diamondiferous kimberlites within 10km of De Beers massive Jwaneng mine is
underway, with an initial grade indication expected on the J-05 kimberlite
before year end."
Contact details:
DiamondCorp plc
Paul Loudon, Chief Executive
Tel: +44 20 3151 0970
Fairfax I.S. PLC
AIM Nomad and Broker
Ewan Leggat/Laura Littley
Tel: +44 207 598 5368
Ocean Equities Limited
Guy Wilkes
Tel: +44 207 786 4370
PSG Capital (Pty) Limited
John-Paul Dicks
Tel: +27 21 887 9602
Russell & Associates
Charmane Russell/Marion Brower
Tel: +27 11 880 3924
19 October 2011
NOT FOR DISTRIBUTION IN OR INTO AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES
OR ANY OTHER JURISDICTION IF TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
LAWS OF SUCH JURISDICTION
Date: 19/10/2011 08:01:08 Produced by the JSE SENS Department.
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