JOHANNESBURG (miningweekly.com) – JSE- and Aim-listed DiamondCorp will no longer sell its Lace mine.
After a number of setbacks last month, which adversely affected its share price, and amid challenges in securing funding to remain a going concern, the company announced on October 18 that it would consider selling the mine.
However, on October 20, it entered into a £700 000 funding arrangement with investment management firm Rasmala, which met DiamondCorp’s immediate funding requirements.
Now that the financing facility has been successfully concluded, and upon review of indicative offers from parties interested in buying the mine, the company has determined that the offers were “opportunistic in nature” and undervalued the company.
It noted on Monday that the Lace asset, irrespective of start-up delays, still contained an estimated 9.39-million carats of diamonds with an in-ground value in excess of $1.5-billion.
As a result, the board has decided to terminate the formal sale process and will continue to examine alternative means of enhancing shareholder value in the normal course of business.
OPERATIONAL UPDATE
Meanwhile, despite the four-day Section 54 shutdown announced on October 13, mining activities and diamond recoveries for the month were close to plan.
DiamondCorp expects Lace to reach commercial production early in 2017.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
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