(MENAFN- ProactiveInvestors - UK) DiamondCorp Plc (LON:DCP) is looking to raise additional finance to fund it through to commercial production at its Lace mine in South Africa, where there have been continued issues with the ramp-up.
Due to various matters underground, the firm cannot drill enough metres in a month to generate more than around 15,000 tonnes of blasted kimberlite.
Output therefore for September to December will be an average of 14 to 15,000 tonnes per month and full commercial mine production of 30,000 tonnes per month is now expected to be delayed until around February next year.
On the plus side, grade, which was negatively affected in July and August, recovered in September, with recoveries averaging 25 cpht (carats per hundred tonnes) for the month against a budget of 29 cpht.
The AIM firm noted that the slower ramp up will mean either smaller diamond sales or a rescheduling of tender sales, each increasing pressure on cashflow.
It is in the process of finalising a convertible debt facility of around £500,000 required immediately and wants to raise additional equity and/or debt of between £2.5mln and £3mln in the short term to fund operations through to commercial production and positive cashflow.
It is also talking to its lender the Industrial Development Corporation of South Africa on deferring capital payments due on its finance facility from the first half of 2017 to when positive cashflow is achieved from the first 100,000 tonnes per month mined.
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