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DiamondCorp Up for Sale or Merger
Oct 19, 2016 7:42 AM
By Rapaport News
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RAPAPORT... DiamondCorp opened itself to a merger or takeover after
saying the London-based company urgently needs about $615,623
(GBP 500,000) to address immediate funding requirements.
The board said the company should conduct a strategic review
while continuing discussions to secure funding. DiamondCorp’s options include a
“merger with or offer for the group by a third party or a sale of the group's
businesses,” according to the company.
“The board intends to pursue any such possible alternatives
to ensure the best outcome for its shareholders,” the company added. Panmure
Gordon is advising the miner.
On October 13, DiamondCorp said the South African Department
of Mineral Resources had shut down underground operations at the company’s
Lace diamond mine after a fire. On October 14, a third party with whom the
company had been discussing a convertible debt facility withdrew because of
“adverse” movement in DiamondCorp’s share price. Shares have plummeted around 40 percent on the London Stock Exchange’s Alternative
Investment Market over the past month.
While the company has accelerated discussions with certain
shareholders and third parties to secure funding, it warned the group may not
be able to continue trading as a going concern in the “very near term” if the
discussions are not resolved successfully.
On October 18, the miner said the shutdown at the Lace
deposit had been lifted and the financial impact of the four-day closure was
minimized by a rescheduling of program maintenance.
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Tags:
DiamondCorp, funding, Lace, Lace Diamond Mine, merger, Rapaport News, South Africa, takeover
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