DiamondCorp puts itself up for sale

DiamondCorp says mining has resumed mining at the Lace diamond mine and also announced that it has put itself up for sale.

Mining resumed at Lace after the Section 54 underground shutdown instruction issued last week by the South African Department of Mineral Resources was lifted.

DiamondCorp says the financial impact of the four days of mining lost as a result of the shutdown instruction has been minimised by a rescheduling of programme maintenance and the fact that the mine was ahead of its planned tonnage for the month at the time of the shutdown.

On 14 October, DiamondCorp announced that the company was in accelerated discussions with certain of the company's shareholders and other third parties to address its immediate funding requirements in order to continue trading as a going concern.

It says these discussions are at an advanced stage and, while no assurances can be given as to successful resolution to these discussions, the company anticipates updating shareholders in the near term. Following that announcement, and in response to initial expressions of interest from potential acquirers who are credible participants in the company's sector, the board is of the view that the company should, in parallel to its discussions to secure additional funding, conduct a wider strategic review to explore additional opportunities including a corporate transaction such as a merger with or offer for the group by a third party or a sale of the group's businesses.

The Board therefore intends to pursue any such possible alternatives to ensure the best outcome for its shareholders. It says the commencement of a 'formal sale process' in accordance with The City Code on Takeovers and Mergers provides the most appropriate framework under which these considerations can be made.

At 8:03am: (LON:DCP) Diamondcorp PLC share price was +0.58p at 2.63p