The Star Late Edition

DiamondCor­p mine back on its feet

- Siphelele Dludla

DIAMONDCOR­P yesterday said operations had resumed at its Lace Diamond Mine in the Free State following a Section 54 shutdown notice on undergroun­d operations by the Department of Mineral Resources (DMR).

“DiamondCor­p is pleased to advise that the Section 54 undergroun­d shutdown instructio­n issued last week by the DMR with respect to the Lace Diamond Mine has been lifted and mining has resumed,” the mine said.

“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.”

Shutdown

The shutdown notice was related to a fire incident on a dump truck extinguish­ed without injury just inside the portal to the decline at the mine, which also holds 74 percent of the ownership.

The instructio­ns issued by the DMR included a request for an “external ventilatio­n audit team to inspect the mine for smoke and other gases”.

Suspension of mining had dealt a blow to the diamond miner as it continues to struggle with raising capital.

The company announced last week that it required additional funding in the very near term of £500 000 (R8.5 million) for immediate financial commitment­s in order to continue trading as a going concern, in addition to its longer term financial requiremen­ts.

The diamond miner said it was in discussion with a third party for the provision of a convertibl­e debt facility to satisfy this requiremen­t, but no assurances could be given that the provision of such finance would be entered into either in time or at all.

But yesterday DiamondCor­p said its board of directors was 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.

It said this should include 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.

As such, the Panel on Takeovers and Mergers has granted a dispensati­on in relation to a merger with a third party or a sale of the company will take place within the framework of a “formal sale process”, saying that the board intended to pursue any such possible alternativ­es to ensure the best outcome for its shareholde­rs.

DiamondCor­p shares rose 40 percent yesterday to close at 56c.

 ?? PHOTO: EPA ?? Diamond miner DiamondCor­p has announced that its Lace Diamond Mine in the Free State has resumed operations after a section 54 shutdown notice related to a fire incident at the mine.
PHOTO: EPA Diamond miner DiamondCor­p has announced that its Lace Diamond Mine in the Free State has resumed operations after a section 54 shutdown notice related to a fire incident at the mine.

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