DiamondCorp said a third party with whom the company has been in advanced discussions for the provision of a convertible debt facility has withdrawn from such talks due to the adverse movement in the company's share price.
"However, the Company is in accelerated discussions with certain of the Company's shareholders and other third parties with a view to securing the necessary additional funding of c.£500,000 to satisfy immediate financial commitments," it said in a statement.
"In the absence of a successful resolution to these discussions, it is likely that the Group will be unable to continue trading as a going concern in the very near term.
"No assurances can be given at this stage that the provision of the required immediate term funding will be entered into either in time or at all.
"Additionally, in the event that the Company secures the required immediate term funding, there can be no certainty that the Company will subsequently secure the necessary funding solutions to meet its longer term financial requirements as previously announced."