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Lace Diamond Mines Put into ‘Business Rescue’

Nov 16, 2016 5:25 AM   By Rapaport News
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RAPAPORT... DiamondCorp subsidiary Lace Diamond Mines (LDM) has been placed into “business rescue,” after severe weather forced the company to halt production and request a suspension of its shares.

DiamondCorp said November 14 it is consulting a business-rescue practitioner and on November 16 confirmed LDM’s board placed the company into ‘business rescue’ in according with section 129 of South Africa’s Companies Act. LDM will formally appoint a ‘business rescue’ practitioner in due course, the miner added.

The Lace mine in South Africa was flooded after an almost 90 millimeters downpour concentrated in just over an hour on November 11. Work at the pit will remain suspended for more than 12 weeks while water is pumped out and repairs undertaken. DiamondCorp, however, put itself up for a sale or merger before the thunderstorms due to urgent funding requirements, but decided to turn away potential bidders as it claimed the offers undervalued the business.

DiamondCorp’s shares have been suspended on the London Stock Exchange’s Alternative Investment Market and the Johannesburg Stock Exchange’s Alternative Exchange since November 14.
Tags: DiamondCorp, Johannesburg Stock Exchange, Lace, Lace Diamond Mine, Lace Diamond Mines, Lace Mine, LDM, London Stock Exchange, Rapaport News, South Africa
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