Source - RNS
RNS Number : 4623M
Diamondcorp Plc
13 October 2016
 

13 October 2016

 

 

DiamondCorp plc

 

AIM share code: DCP & JSE share code: DMC

ISIN: GB00B183ZC46

(Incorporated in England and Wales)

(Registration number 05400982)

(SA company registration number 2007/031444/10)

 

("DiamondCorp", "the Group" or "the Company")

 

Lace DIAMOND mine

OPERATIONAL and financial UPDATE

 

DiamondCorp, the Southern African diamond mining, development and exploration company, provides the following update on the Lace diamond mine in the Free State province of South Africa.

 

The Company's 74%-owned subsidiary, Lace Diamond Mines (Pty) Limited has been issued with a Section 54 shut down notice on underground operations by the South African Department of Mineral Resources ("DMR") relating to a fire incident on a dump truck which was extinguished without injury just inside the portal to the decline. The instructions issued by the DMR include a request for an "external ventilation audit team to inspect the mine for smoke and other gases". Mine management is struggling to find logic in the instruction and is considering its options including legal means of redress. The Company expects that underground mining operations will remain suspended for at least one week.

 

As announced on 12 October 2016, the Company, in addition to its longer term financial requirements, requires additional funding in the very near term of c.£500,000 for immediate financial commitments in order to continue trading as a going concern. The Company remains in discussion with a third party for the provision of a convertible debt facility to satisfy this requirement.

 

However, no assurances can be given at this stage that the provision of such finance will be entered into either in time or at all. In the absence of such a facility, it is likely that the Group will be unable to continue trading as a going concern.

 

The Company will update shareholders accordingly.

 

 

 

Contact details:

 

DiamondCorp plc

Paul Loudon, Chief Executive

Tel: +27 56 216 1300

Euan Worthington, Chairman

Tel: +44 7753 862 097

 

UK Broker & Nomad

Panmure Gordon (UK) Limited

Adam James/Atholl Tweedie

Tel: +44 20 7886 2500

 

JSE Designated Advisor

Sasfin Capital (a division of Sasfin Bank Limited)
Megan Young

Tel: +27 11 445 8068

 

SA Corporate Advisor

Qinisele Resources Proprietary Limited

Dennis Tucker/Andrew Brady

Tel: +27 11 883 6358

 

 

The information communicated in this announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014 ("MAR").


This information is provided by RNS
The company news service from the London Stock Exchange
 
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