DCP Diamondcorp

TIDMDCP

RNS Number : 3596Q

Diamondcorp Plc

29 November 2016

29 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")

Corporate and Operational Update

The Group announces the following update in regards DiamondCorp and the business rescue proceedings ("Business Rescue") of the Company's operating subsidiary, Lace Diamond Mines (Pty) Ltd ("LDM").

-- The 310m production level is clear of the flood water and the mine's pumping system is now working on a normal basis.

-- The longhole drill rig has been moved to higher ground within the mine and is awaiting remediation of the access ramp before being brought to surface for despatch to Sandvik for rebuild. Options and timelines for ramp repair are being assessed by LDM management.

-- The Business Rescue Practitioner, Daniel Terblanche of Deloitte, and the management of LDM are engaged in discussions with all stakeholders in accordance with the provisions of section 129 of the South African Companies Act, 71 of 2008, including but not limited to: trade creditors, the Industrial Development Corporation of South Africa ("IDC") as the primary lender; bond holders; Laurelton Diamonds, Inc; the mine's workforce including the Association of Mineworkers and Construction Union (AMCU); and Soapstone Investment Ltd and DiamondCorp plc, being themselves the largest creditors to LDM.

-- The Board of DiamondCorp plc is also in continuing discussions with the Company's creditors.

-- LDM is in the process of claiming against its insurance policy in respect of the storm damage and remediation.

-- 5130 carats of diamonds recovered prior to the mine closure are currently being tendered for sale in Johannesburg.

-- Management, alongside PwC, continue to evaluate the Group's financial projections with a view to determining the resultant additional capital requirement that is anticipated to be required in the event of a successful conclusion of the Business Rescue proceedings.

   --      The Company's shares remain suspended on AIM and AltX. 

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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November 29, 2016 02:00 ET (07:00 GMT)

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