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Kimberley Sells Shares to Repay Chinese Firm

Jun 27, 2016 7:32 AM   By Rapaport News
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RAPAPORT... Kimberley Diamonds raised $3 million (AUD 4 million) by issuing shares to partly repay a loan taken out from a Chinese auction house.

The company said it sold 40.2 million shares at AUD 0.10 per share, and of these about 7 million shares were issued to Zhejiang Huitong Auction Co to pay off a part of the $9.7 million debt.

Kimberley Diamonds and Zhejiang have also agreed to amend the terms of the deal, allowing the latter to convert approximately $134,500 of the borrowing into shares at AUD 0.10 apiece. The company now owes Zhejiang about $8.4 million, according to a statement June 24.

Meanwhile, Kimberley Diamonds said June 22 it and three of its directors intend to defend themselves against claims by the liquidators of a former subsidiary, Kimberley Diamond Company Pty Ltd, over allegations of trading while insolvent, “voidable transaction recovery proceedings” and breaches of director duties. The liquidators at Australian insolvency firm Jirsch Sutherland sued the company and directors Alex Alexander, Noel Halgreen and Rodney Sainty, according to a company statement.

The liquidators have claimed $17 million plus costs and interest. On top of that, there are also claims for “unspecified amounts,” the miner said.

The case revolves around the collapse last July of Kimberley Diamonds’ Ellendale mine in Australia, which supplied fancy yellow diamonds to Tiffany & Co.
Tags: Australia, Ellendale, Ellendale mine, finance, kimberley, Kimberley Diamonds, lending, Rapaport News, Zhejiang Huitong Auction Co
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