Diamonex raises millions in SPP

WANETSHA MOSINYI
Staff Writer | Friday July 11, 2008 00:00

A total of 6,506,121 shares have been allotted under the SPP with holding statements being dispatched to shareholders this week, the company said in an E-mailed statement on Tuesday.

Last month, DiamonEx offered all shareholders up to A$5,000, approximately P31,095 worth of new fully paid ordinary shares in order to raise funds to provide additional working capital during the ramp-up to full production at Lerala Diamond Mine.

The company, which is listed on the BSE, AIM and ASX, said then that the shares offered are without brokerage costs, for 23.5 cents per fully paid ordinary share.

The maximum number of shares that may be applied for is 21,275.The company said the right to participate in the SPP was available to all shareholders who are registered as holders of fully paid ordinary shares on the three bourses.

The SPP was capped at a total value of A$4 million (P24.9 million) in order to ensure that the SPP can be made to Diamonex shareholders resident in the UK without the requirement to issue a full prospectus document.

'It is the intention of Diamonex to ensure that the offer is available to all shareholders of Diamonex, including holders of the Depositary Interests traded on the AIM,' says the statement.Diamonex's Botswana sponsoring brokerage firm, Capital Securities said local shareholders have participated in two previous offers from the company and that demand has always been good.

On Wednesday, the company which is listed on the BSE's Foreign Equity main board traded at 155 thebe per share after losing 4 thebe.

Diamonex started production at Lerala at the end of June. During the commissioning period, approximately 30,000 tonnes of ore will be processed, liberating diamonds for sale this month.

At present, the company has stockpiled some 200,000 tonnes of ore ready for hot commissioning and processing. Monthly throughput is around 100,000 tonnes of ore during full production.