DMC - DiamondCorp plc - Placing to raise GBP3.48 million

Release Date: 17/06/2011 07:05
Code(s): DMC
 
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DMC - DiamondCorp plc - Placing to raise GBP3.48 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 GBP3.48 million 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 HIGHLIGHTS - The Company has placed 26,794,397 new ordinary shares of 3 pence each in the Company at a price of 13 pence per share to raise approximately GBP3.48 million (before expenses) (the "Placing"); - The proceeds of the Placing are to be applied to the Company`s kimberlite exploration activities in Botswana and working capital for activities in South Africa. Introduction The Board of DiamondCorp, the southern African diamond development and exploration company, is pleased to announce that it has placed 26,794,397 new ordinary shares of 3 pence each in the Company at a price of 13 pence per share to raise, in aggregate, GBP 3.48 million gross proceeds for the Company (approximately GBP3.3 million net of expenses). The Placing Price represents a discount of 0.95 per cent. to the closing mid-market price of 13.125p on 15 June 2011. Use of Proceeds The proceeds of the Placing are expected to be applied as follows: GBP million Mini-bulk test, including large diameter drilling of 1.50 kimberlite exploration projects in Botswana. General working capital 1.80 Placing expenses 0.18 Total 3.48 Details of the Placing The Company currently has authority to issue a total of 19,693,882 ordinary shares of 3p each in the Company. Therefore the Placing will comprise: (i) 19,693,882 ordinary shares of 3p each in the Company (the "Placing Shares"); and (ii) 7,100,515 ordinary shares of 3p each in the Company which will be placed subject to shareholder approval at the next annual general meeting of the Company (the "Conditional Placing Shares"). Notice of the annual general meting will be sent to shareholders shortly and is expected to be held on or around 25 July 2011. 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
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