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DiamondCorp decides against selling Lace mine

18th November 2016

By: Anine Kilian

Contributing Editor Online

  

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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 on 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 last week 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.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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