DCP Diamondcorp

TIDMDCP

RNS Number : 0383P

Diamondcorp Plc

14 November 2016

14 November 2016

DiamondCorp plc

AIM share code: DCP & JSE share code: DMC

ISIN: GB00B183ZC46

(Incorporated in England and Wales)

(Registration number 05400982)

(SA company registration number 2007/031444/10)

("DiamondCorp", "the Group" or "the Company")

OPERATIONAL UPDATE AND Suspension of Shares

DiamondCorp, the Southern African diamond mining, development and exploration company, announces the following update.

In the late afternoon of Friday, 11 November 2016, two extreme thunderstorms passed over the Lace Mine, dropping almost 90mm of rain in just over an hour. This equates to almost one-third of the mine's annual rainfall.

This overwhelmed the mine's pumping systems and flooded the 310m production level to the hanging wall. In total, more than 10,000 cubic metres of water is estimated to have entered the mine through the open pit and access ramps.

All personnel were successfully evacuated from the mine without injury. To pump the production level dry will take at least a week assuming no further material rainfall. However, once the level is dry no production will be possible in the short-term as the longhole drill rig which was operating at the time of the flood will need to be recovered and the electrics rebuilt. This could take up to 12 weeks from the time of recovery.

Management is investigating all options as a consequence of the above and its impact on the Group's financial position, and is consulting a business rescue practitioner for the Company's operating subsidiary, Lace Diamond Mines (Pty) Ltd, pursuant to Chapter 6 of the Companies Act 2008 in South Africa.

The Company has requested a suspension of its shares from trading on both the AIM Market of the London Stock Exchange and on the Alternative Exchange of the JSE Limited with effect from 07:30 a.m. UK time and 09:00 a.m. SA time, respectively, pending clarification of its financial position.

The Company will provide further updates in due course.

Contact details:

DiamondCorp plc

Paul Loudon, Chief Executive

Tel: +27 56 216 1300

Chris Ellis, Interim Non-Executive Chairman

Tel: +44 (0) 20 3151 0970

UK Broker & Nomad

Panmure Gordon (UK) Limited

Adam James/ Atholl Tweedie

Tel: +44 20 7886 2500

JSE Designated Advisor

Sasfin Capital (a division of Sasfin Bank Limited)

Megan Young

Tel: +27 11 445 8068

SA Corporate Advisor

Qinisele Resources Proprietary Limited

Dennis Tucker/Andrew Brady

Tel: +27 11 883 6358

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014 ("MAR").

This information is provided by RNS

The company news service from the London Stock Exchange

END

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(END) Dow Jones Newswires

November 14, 2016 02:00 ET (07:00 GMT)

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