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DiamondCorp Insolvency Hinges on Wage Deal

Jan 15, 2017 10:48 AM   By Rapaport News
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DiamondCorp warned it will likely enter insolvency proceedings unless an agreement is reached over retrenchment and payment of outstanding wages in relation to its Lace Mine in South Africa.

The company therefore announced a share sale to fund the care and maintenance of the Lace Mine, after operations were suspended because of severe flooding in November.

DiamondCorp plans to raise $1.2 million (GBP 1 million) through a sale of shares priced at or about $0.05 (GBP 0.04). Proceeds will mainly pay for maintenance of the mine until early- to mid-April 2017 as well as direct costs associated with its proposed revival, DiamondCorp said.

Completion of the fundraising is conditional on negotiations between DiamondCorp's business-rescue practitioner, Deloitte & Touche, and the Association of Mineworkers and Construction Union over retrenchments and outstanding wages, the company said..

Tags: Association of Mineworkers and Construction Union, deloitte, Deloitte & Touche, DiamondCorp, employment, Lace, Lace Diamond Mine, Lace Mine, mining, Rapaport News, Retrenchments, Trade unions
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