(DCP.L) Diamondcorp PLC Buy/Sell

RNS Number : 8707B Diamondcorp Plc 03 November 2009

DiamondCorp plc ("DiamondCorp" or "the Company")

3 November 2009

Proposed Placing

DiamondCorp, the South African diamond mining and exploration company, is pleased to announce that in accordance with the general authority approved by shareholders at the annual general meeting held on 6 May 2009, the Company will place up to 6,000,000 fully paid ordinary shares ('new shares') of 3p par value for gross proceeds of up to £600,000.

The new shares represent 14.60% of the Company's issued share capital and will rank pari passu with all existing shares.

The Company has applied for the new shares to be listed on the JSE Limited ('JSE') and the AIM Market of the London Stock Exchange. The admission of the shares to trading on AIM is expected on Friday, 6 November 2009.

The shares have been placed at 10 pence per share (the equivalent of R1.27 per share) at the prevailing exchange rate of 12.68R to new and existing "public" shareholders within the meaning of paragraphs 4.25 and 4.26 of the Listings Requirements of the JSE, as well as directors of the Company.

The Directors of Diamondcorp, with the exception of the directors taking part in the Placing as set out below, consider, having consulted with the Nominated Adviser that the terms of the transaction are fair and reasonable insofar as shareholders are concerned.

The proceeds of the placing will be used to complete a drilling programme on the Company's Jwaneng South kimberlite exploration project in Botswana and for general working capital purposes.

The Company is paying to regulated firms placing the shares a 5% commission and a 5% broker warrant at the placing price exercisable at any time for 36 months after the issue date of the new shares. The broker warrant will be subject to shareholder approval at the next general meeting of shareholders.

Financial effects

The table below reflects the pro forma financial effects of the placement. This table has been prepared for illustrative purposes only in terms of the Listings Requirements of the JSE and therefore, due to its nature may not truly reflect DiamondCorp's financial position or results. The directors of DiamondCorp are responsible for the preparation of the pro forma financial effects.

Before issue of new After issue of new shares % change (iii)
shares (i) (ii)

Basic loss per share (pence)
2.4 2.1 12.75

Headline loss per share
(pence) 2.4 2.1 12.75

Net asset value per share
(pence) 30.0 27.4 8.67

Tangible net asset value per
share (pence) 9.5 9.5 0.00

Number of shares in issue
41,086,995 47,086,995 14.60

Notes