Diamondcorp Plc Issue of Equity - Placing to raise £2.1 million (3895D)

TIDMDCP

RNS Number : 3895D

Diamondcorp Plc

28 March 2014

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")

Placing to raise GBP2.1 million

DiamondCorp, the Southern African diamond development, exploration and mining company, is pleased to announce that it has placed 41,526,000 new ordinary shares of 0.1 pence each in the Company (the "New Shares") to raise gross proceeds of approximately GBP2.1 million (the "Placing").

The Placing, which was oversubscribed, was undertaken with a range of new and existing institutional and private investors in both the UK and South Africa. The New Shares comprise 36,526,000 UK Placing Shares at a price of 5 pence each, placed through Panmure Gordon (UK) Limited, and 5,000,000 SA Placing Shares at a price of ZAR0.90 each (being equivalent to 5 pence based on current exchange rates), subscribed through Sasfin Capital. The price per UK Placing Share and per SA Placing Share represents a discount of 7.0 per cent. and 10.9 per cent. to the closing mid-market price on AIM and AltX, respectively, on 27 March 2014.

The net proceeds of the Placing (which are expected to be approximately GBP2.0 million) will be used to fund corporate overheads over the next two years and for general working capital purposes. Development of the underground mine at Lace, operated by DiamondCorp's 74% subsidiary Lace Diamond Mines (Pty) Limited, has been fully project financed for the 47 level block cave. Underground mining remains within budget and on track for commercial production ramp up in the second half of 2015.

Commenting on the Placing, DiamondCorp's CEO Paul Loudon said: "We are delighted with the continued support of our existing shareholders and welcome some new shareholders onto our register.

DiamondCorp is in the process of making the transition from mine developer to becoming a mid-tier diamond producer, and we will be providing regular updates on the progress of the development at Lace. We also look forward to announcing the results of drilling the additional kimberlite resources in the Bulge area of the Lace pipe before the middle of the year."

An updated corporate presentation will shortly be made available on the Company's website www.diamondcorp.plc.uk.

Admission and Dealings

The Placing is conditional on the admission of the New Shares to trading on the AIM Market of the London Stock Exchange plc ("AIM") and the Alternative Exchange of the JSE Limited ("AltX"). Applications are in the process of being made to the London Stock Exchange and the JSE Limited for admission of the 41,526,000 New Shares to be admitted to trading on AIM and AltX ("Admission"). It is expected that such Admission will become effective and that dealings will commence on AIM and AltX at 8.00 am UK time on 4 April 2014.

The New Shares will rank pari passu with existing ordinary shares of 0.1 pence each in the Company ("Ordinary Shares").

Following Admission, the Company will have 318,365,478 Ordinary Shares in issue, all of which have voting rights. The New Shares will represent approximately 15.0 per cent. of the enlarged issued ordinary share capital of the Company.

The above figure of 318,365,478 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in DiamondCorp under the FCA's Disclosure and Transparency Rules.

Contact details:

DiamondCorp plc

Paul Loudon, Chief Executive

Tel: +27 (0) 56 212 2930

Euan Worthington, Chairman

Tel: +44 (0) 7753 862 097

UK Broker & Nomad

Panmure Gordon (UK) Limited

Dominic Morley/Adam James

Tel: +44 20 7886 2500

JSE Designated Advisor

Sasfin Capital (a division of Sasfin Bank Limited)