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23 May 2008 16:00
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DiamondCorp plc
JSEΒ share code: DMCΒ AIM share code: DCP
ISIN: GB00B183ZC46
(Incorporated inΒ EnglandΒ andΒ Wales)
(Registration number 05400982)
(SA company registration number 2007/031444/10)
("DiamondCorp" or "the Company")
GENERALΒ ISSUE OF SHARESΒ FOR CASH
DIAMONDCORPΒ CAPITAL RAISINGΒ FORΒ INITIATION OFΒ DEVELOPMENT OF UNDERGROUND MINE AT LACE
At the annual general meeting of the Company held onΒ 7 December 2007, theΒ requisite majority ofΒ DiamondCorpΒ shareholders approved an ordinary resolutionΒ authorising the directors ofΒ DiamondCorpΒ to issue shares for cashΒ of up toΒ an equivalent of 14.4Β percentΒ of the issued share capital at that date.Β
DiamondCorp is pleased to announce that in accordance with this general authority,Β the Company hasΒ successfully placedΒ 2,249,923Β ordinary shares ("newΒ shares"), equating toΒ 6.5 percent of the Company's issued share capital, thereby raisingΒ gross proceeds of R26,076,608 (the "private placing").Β The new shares are to be listed on the JSE Limited ("JSE") on Monday, 26 May 2008 and the Company has applied for admission of the shares on the Alternative Investment Market of the London Stock Exchange ("AIM")Β which is expected to beΒ Β 27 May 2008 (following the bank holiday on Monday, 26 May 2008). The new shares rankΒ pari passuΒ with the existing shares of the Company.Β
In terms of the private placing,Β DiamondCorpΒ placedΒ the newΒ shares at anΒ issue price of R11.59Β per shareΒ on the JSE; the equivalent ofΒ 77.7 penceΒ at the prevailing exchange rateΒ of 14.92R/£ on 6 May 2008 ("last practicable date"). ThisΒ represents aΒ 10% discount to the 30 day volume weighted average priceΒ ("VWAP")Β of 83.6 pence per share on AIM as atΒ the last practicable date.Β The sharesΒ have beenΒ placed withΒ South AfricanΒ institutional shareholders, who qualify as "public" shareholders within the meaning of paragraphs 4.25 and 4.26 of the Listings Requirements of the JSE.Β
Application of proceeds
The proceeds will be used toΒ accelerateΒ the undergroundΒ development of the Lace kimberlite mineΒ nearΒ KroonstadΒ ("Phase II development"),Β whichΒ includesΒ theΒ constructionΒ of aΒ new 4mΒ xΒ 4mΒ spiral decline to access the satellite kimberliteΒ and main Lace kimberlite pipes,Β andΒ theΒ dewatering and refurbishment of the existingΒ 6m x 2.7mΒ vertical shaft.Β It is anticipated that the equity raised, in additionΒ toΒ debt-financing ofΒ theΒ trackless mining fleet, will enable DiamondCorp toΒ commence the haulage ofΒ kimberlite ore in the last quarter of 2008.Β
The managing director and CEO of DiamondCorp, Paul Loudon said: "We are delighted that South African institutional investors have supported this equity issue which will allow us to re-commence underground mining at Lace for the first time since 1930 and more than 12 months ahead of our original schedule."
Financial effects
The table below reflects the unauditedΒ pro formaΒ financial effects of the above mentioned general issue of shares for cash. TheΒ pro formaΒ financial effects haveΒ been prepared for illustrative purposes only and in terms of the Listings Requirements of the JSE and therefore due to their nature, may not truly reflectΒ DiamondCorp'sΒ financial position or results. The directors ofΒ DiamondCorpΒ are responsible for the preparation of theΒ pro formaΒ financial effects.
|
Before issue of new sharesΒ (i) |
After issue of new sharesΒ (ii) |
(%) Change |
|
|
Basic loss per shareΒ (pence) |
6.27 |
5.88 |
6.2% |
|
Headline loss per shareΒ (pence) |
6.26 |
5.87 |
6.2% |
|
Net asset value per shareΒ (pence) |
38.2 |
40.5 |
6.0% |
|
Tangible net asset value per shareΒ (pence) |
20.7 |
24.2 |
16.9% |
|
Number of shares in issueΒ |
34,770,408Β |
37,020,331Β |
6.5% |
Notes:
The "Before the issueΒ of new shares" figures are based onΒ theΒ DiamondCorpΒ audited resultsΒ for theΒ year ended 31 DecemberΒ 2007.Β It should be noted that the effect of the warrants that were converted to 66,664 new shares during 2008, hasΒ been ignored.Β
The "After issue of new shares"Β pro formaΒ column is based on the assumption that the issueΒ of new sharesΒ was effective on 1 January 2007.Β It is assumed that the proceeds will be utilised for capital expenditure and working capital and will therefore not affect earnings for the period.Β The proceeds have been converted at the prevailing exchange rate as at 22 May 2008Β of 15.09R/Β£.
London
23Β May 2008
Corporate advisor
InvestecΒ Bank Limited
SponsorΒ
InvestecΒ BankΒ Limited
Enquiries:
DiamondCorp
Paul Loudon (CEO)
+44 7879 478 301
+27 82 824 6897
ploudon@diamondcorp.plc.uk
Investec Bank Limited
Gavin HallΒ /Β TanisΒ CrosbyΒ / Robert Smith
+27 11 286 9084 / 7534Β / 7326
Russell and AssociatesΒ
Charmane Russell
+27 11 880 3924
Cenkos Securities plc
NOMAD and Broker
Elizabeth Bowman / Ivonne Cantu
+44 207 397Β 8900
Β
www.diamondcorp.plc.uk
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