To view the PDF file, sign up for a MySharenet subscription.

DMC - DiamondCorp plc - Placing to raise GBP2.05 million

Release Date: 20/10/2011 08:00
Code(s): DMC
Wrap Text

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 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

Share This Story