Lace Diamond mine
DiamondCorp updated its shareholders on Tuesday regarding the company’s business rescue proceedings at the Lace mine in South Africa.

DiamonCorp said on Tuesday in an update on the company’s business rescue proceedings at the Lace mine that the mine’s 310 m production level has been cleared of flood water and the mine’s pumping system is now working as per normal.

Further, the longhole drill rig at Lace diamond mine has been moved to higher ground within the mine. It will be brought to surface for rebuild by Sandvik once the access ramp has been repaired.

DiamondCorp also said various options and timelines for the ramp repair are being assessed by the mine’s management.

Meanwhile, the company’s business rescue practitioner, Daniel Terblanche of professional services firm Deloitte, and the management of Lace mine are in discussions with all of the relevant stakeholders, while the DiamondCorp board is also in discussions with the company’s creditors.

Lace diamond mine is in the process of claiming against its insurance policy in respect of the recent storm damage. In addition,  5 130 carats of diamonds recovered prior to the mine closure are currently being tendered for sale in Johannesburg.

And while the company’s shares remain suspended on AIM and AltX, management continues to evaluate the group’s financial projections to determine the amount additional capital required if the business rescue proceedings are concluded successfully.

DiamondCorp said on 18 October that it is considering the merger or sale of its embattled Lace diamond mine in the Free State to ensure the best outcome for its shareholders.