Lerala Mine reopening deferred :: Mmegi Online

Kimberley Diamonds has postponed the reopening of Lerala Mine in the Central District after deferring a planned capital raising, owing to the prevailing market conditions. In February, the Australian Stock Exchange listed company announced plans to bring the Lerala Diamond Mine back to production this year after wrapping up its acquisition from Mantle Diamonds.

But in a statement this week, Kimberley says it has now called off a proposed placement of some 30 million shares, as the board was conscious of unnecessarily diluting its existing shareholder base, given the pricing levels currently available.

“The re-commissioning of the Lerala Diamond Mine, in Botswana would be postponed until funding became available, either through cash flow or external sources. The company has been presented with alternate, non-dilutive options to fund its development programme, which the board would now consider,” the statement said.

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