https://www.engineeringnews.co.za

DiamondCorp decides against selling Lace mine

7th November 2016

By: Anine Kilian

Contributing Editor Online

  

Font size: - +

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 Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Axiom Hydraulics
Axiom Hydraulics

Axiom Hydraulics is a trusted leader in South Africa’s hydraulic industry, delivering world-class components, systems, and engineering expertise...

VISIT SHOWROOM 
Egoli Gas (Pty) Ltd
Egoli Gas (Pty) Ltd

As a reticulator, Egoli Gas provides natural gas to homes and businesses via underground pipes.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.056 1.233s - 140pq - 2rq
Subscribe Now