RAPAPORT... Namakwa Diamonds expects to raise approximately $55 million after shareholders approved issuing more shares. Funds were expected to pay down debt and provide working capital. The diamond-mining junior expects to repay approximately $45 million in debt.
"During the first half of this year, we have been focused on ramping up production at the Kao mine to achieve a positive cash flow in the fourth quarter of this year,” said Namakwa's chief executive Richard Collocott. “I am happy to report that current trading is in line with our expectations. However, it has become increasingly apparent that the financial performance and position of the group depends on the repayment of existing loans.''
Namakwa's largest shareholder, Jarvine Limited, approved the share offering and agreed to subscribe for all of the shares if other qualifying shareholders don’t subscribe.