DiamondCorp said in a statement it is expected that admission of the placing of shares and the fee shares will become effective on AltX on or before 3 February 2017.
The Association of Mining & Construction Union (AMCU) has been engaging constructively with the management of the company in an effort to reach a workable agreement, and DiamondCorp announced that such an agreement has been reached in principle. This agreement remains subject to satisfactory documentation and final terms.
“Regrettably, Deloitte & Touche, the business rescue practitioner of Lace Diamond Mines, has so far been unable to reach agreement with the secured lender, the Industrial Development Corporation of South Africa (IDC), with respect to various issues related to the board’s obligations pursuant to this placing,” said DiamondCorp. Without agreement on these points, the board will be unable to proceed and DiamondCorp will likely have to be placed into administration.
Its operating subsidiary, Lace Diamond Mines, was placed into business rescue in November last year after flooding of its Lace mine made production impossible in the short term. DiamondCorp had requested that its shares be suspended from trading on both AIM and the AltX of the JSE.
“In order to finalise the agreement in principle reached with AMCU, and to provide the maximum time available for the IDC to decide whether or not to agree to the conditions necessary to enable this placing to be concluded, admission will be delayed to give AMCU and the IDC until noon on Monday, 30 January 2017 to fulfil all the conditions precedent,” DiamondCorp added.