Kimberley Diamonds Raises $4.25 Million Through Private Placements

Mining and Exploration
03/02/2017 09:56

Kimberley Diamonds Ltd (KDL), owner of the Lerala Diamond Mine located in north-eastern Botswana - which comprises a cluster of five diamond-bearing kimberlite pipes, designated K2 to K6, and a processing plant - is in the process of raising US$3.4 million (A$4.4) through "a non-renounceable pro-rata rights issue offer of new KDL ordinary shares (New Shares) at an issue price of $0.02 per New Share" to fund operations and repay loans. On January 23 2017, the Company announced it undertook a private placement of shares to raise further funds. This achieved: 28,064,165 shares issued to a private investor raising approximately $560,000 at an issue price of $0.02 per share; and14,265,950 shares at $0.02 per share issued to Zhejiang Huitong Auction Co Ltd (or its nominees), in full satisfaction of the outstanding interest due on its loan to KDL.

On 14 November 2016, KDL lodged an application with the ASX for removal from the official list of the ASX due primarily to: KDL’s shares trading at a price which is materially lower than the underlying value of the company’s assets; low liquidity in KDL shares; lack of interest for KDL shares in the Australian market. On December 23 2016, the ASX confirmed that KDL would be permitted to delist, and on January 19 2017, the Company commenced a voluntary suspension of the company’s securities from quotation. 

KDL, through its wholly owned subsidiary, Lerala Diamond Mines Limited, has also earned a 50% right in the Tilwane Joint Venture, a greenfields kimberlite exploration project in Botswana located some 60km to the east of the large scale Orapa and Letlhakane diamond mines. At 31 December 2016, approximately A$162,000 had been expended in exploring the property since KDL has held an interest in the Tilwane Joint Venture. Exploration has focused on geophysical surveys and geochemical analyses, and has identified a number of significant targets deserving of further attention. No additional funds have been expended in the quarter under review. Lerala produced 9,338 carats last November.