Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Kimberley Diamonds on Friday announced that it would be undertaking a nonrenounceable pro-rata rights issue to raise nearly A$10-million.
Eligible shareholders in Australia and New Zealand would be able to purchase one new share for every two existing shares held, at a price of 19c each.
The capital would be used to fund the recommissioning of Kimberley’s Lerala mine, in Botswana, as well as for general working capital purposes.
In June this year, Kimberley approved A$14.7-million to recommission the Lerala diamond project, which the previous owner, Mantle Diamonds, placed on care and maintenance in 2012.
The project is expected to start production in 2015, and would produce some 400 000 ct/y of diamonds at full production.
Meanwhile, the diamond miner on Friday reported that it would be offering 750 ct of its high-quality fancy yellow diamonds for sale in auction by eDiamonds, during September.
The diamonds were sourced from the Ellendale mine, in Australia, which represents nearly 50% of the world’s fancy yellow supply.