| Thu 20 Oct 2011, 8:00 | | 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 following amendment has been made to the `Placing to Raise GBP2.05 million`
announcement released on 19 October at 7.00 am under RNS No 4185Q.
The existing shareholding in the Company of Paul Loudon has been corrected to
2,588,052 and therefore his total shareholding following the Placing is
2,888,052 which represents approximately 1.19% of the issued share capital of
the Company as enlarged by the Placing.
All other details remain unchanged.
The full amended text is shown below.
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
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
shareholding in Placing shareholding of the
the Company Shares following the issued
subscribed Placing share
for in the capital of
Placing the
Company as
enlarged
by the
Placing
Paul Loudon* 2,588,052 300,000 2,888,052 1.19%
Euan Worthington 190,000 307,000 497,000 0.21%
Jonathan Willis- 2,656,666 80,000 2,736,666 1.13%
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
20 October 2011
Date: 20/10/2011 08:00:44 Produced by the JSE SENS Department.
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