DiamondCorp placing delayed

DiamondCorp's board has decided to delay admission of the placing shares and the fee shares on AIM to 28 February as conditions to the placing, which was announced on 13 January, have not yet been met.

It is expected that admission of the placing Shares and the Fee Shares will become effective on AltX on or before 7 March 2017. But DiamondCorp said the agreement in principle reached with the Association of Mining & Construction Union, as announced on 25 January, was being subjected to material amendments by AMCU, and it was currently unclear whether final terms and associated documentation would be able to be entered into between the parties that was consistent with the terms that had previously been agreed.

The company said that if the original agreement was not finalised in "the very near term, then it is currently expected that LDM's, and therefore DiamondCorp's, ability to effectively execute the mine's care and maintenance and remediation programme will be compromised".

DiamondCorp added: "Discussions continue with the Industrial Development Corporation of South Africa, including in relation to the provision of Post-Commencement Funding, pursuant to the Companies Act 2008 in South Africa.

"Approval is being sought for modifications to the IDC loan terms that would allow for immediate PCF, in addition to the placing, in advance of the longer-term restructuring that is considered necessary for the Group to put in place and fund a successful Business Rescue plan. In their capacity as BRP, Deloitte & Touche have also commenced soliciting expressions of interest for a strategic investor(s) in LDM."