TIDMDCP
RNS Number : 2781B
Diamondcorp Plc
03 April 2017
3 April 2017
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 Company" or "the Group")
Corporate Update
DiamondCorp, the Southern African diamond mining, development
and exploration company, announces the following update in respect
of discussions with the Industrial Development Corporation of South
Africa ("IDC") and the Association of Mining & Construction
Union ("AMCU").
Further to the announcement of 28 February 2017, discussions
between AMCU and the Business Rescue Practitioner ("BRP") under the
supervision of the South African Commission for Conciliation,
Mediation and Arbitration have terminated without a settlement
being reached on a collective agreement to allow care and
maintenance to commence. Consequently, effective April 3(rd) all
employees will be retrenched.
As a further consequence of the retrenchment, the senior secured
status necessary for the effectiveness of the post commencement
finance pursuant to the IDC Agreement (as announced on 28 February
2017) is no longer available for new funding, as in a liquidation
priority is given to amounts due relating to employment.
Following discussions with the major affected parties, LDM has
appointed Lebogang Mpakati of Independent Advisory (Pty) Ltd
(www.corprecover.co.za) as joint Business Rescue Practitioner,
alongside Daniel Terblanche of Deloitte & Touche.
The Board of DiamondCorp has advised the BRP and the IDC that
unless there is an accelerated plan and route for funding in place
which can be completed by mid-May 2017, including a significant
restructuring of all debt, and successful exit from the Business
Rescue process, then it is likely that the Group would need to be
placed into administration.
Capitalised terms in this announcement, unless otherwise
defined, have the same meaning given to them in the announcements
issued by the Company on 28 February 2017, as appropriate.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014.
Contact details:
DiamondCorp plc
Chris Ellis, Interim Non-Executive Chairman
Tel: +44 (0) 20 3151 0970
Paul Loudon, Chief Executive
Tel: +27 56 216 1300
UK Broker& Nominated Adviser
Panmure Gordon (UK) Limited
Adam James / Atholl Tweedie
Tel: +44 20 7886 2500
JSE Designated Adviser
Sasfin Capital (a division of Sasfin Bank Limited)
Megan Young
Tel: +27 11 445 8068
Important Information
This announcement contains (or may contain) certain
forward-looking statements with respect to certain of the Company's
plans and its current goals and expectations relating to its future
financial condition and performance and which involve a number of
risks and uncertainties. The Company cautions readers that no
forward-looking statement is a guarantee of future performance and
that actual results could differ materially from those contained in
the forward-looking statements. These forward-looking statements
can be identified by the fact that they do not relate only to
historical or current facts. Forward-looking statements sometimes
use words such as "aim", "anticipate", "target", "expect",
"estimate", "intend", "plan", "goal", "believe", or other words of
similar meaning. By their nature, forward-looking statements
involve risk and uncertainty because they relate to future events
and circumstances, including, but not limited to, economic and
business conditions, the effects of continued volatility in credit
markets, market-related risks such as changes in the price of
commodities or changes in interest rates and foreign exchange
rates, the policies and actions of governmental and regulatory
authorities, changes in legislation, the further development of
standards and interpretations under International Financial
Reporting Standards ("IFRS") applicable to past, current and future
periods, evolving practices with regard to the interpretation and
application of standards under IFRS, the outcome of pending and
future litigation or regulatory investigations, the success of
future explorations, acquisitions and other strategic transactions
and the impact of competition. A number of these factors are beyond
the Company's control. As a result, the Company's actual future
results may differ materially from the plans, goals, and
expectations set forth in the Company's forward-looking statements.
Any forward-looking statements made in this announcement by or on
behalf of the Company speak only as of the date they are made.
Except as required by the Financial Conduct Authority (the "FCA"),
the London Stock Exchange or applicable law, the Company expressly
disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained in
this announcement to reflect any changes in the Company's
expectations with regard thereto or any changes in events,
conditions or circumstances on which any such statement is
based.
This announcement is for information purposes only and shall not
constitute an offer to buy, sell, issue, or subscribe for, or the
solicitation of an offer to buy, sell, issue, or subscribe for any
securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
This announcement does not contain an offer or constitute any
part of an offer to the public within the meaning of Sections 85
and 102B of the Financial Services and Markets Act 2000, as amended
("FSMA") or otherwise. This announcement is not an "approved
prospectus" within the meaning of Section 85(7) of FSMA and a copy
of it has not been, and will not be, delivered to the FCA in
accordance with the Prospectus Rules or delivered to any other
authority which could be a competent authority for the purpose of
the Prospectus Directive. Its contents have not been examined or
approved by the London Stock Exchange plc, nor has it been approved
by an "authorised person" for the purposes of Section 21 of
FSMA.
This announcement has been issued by and is the sole
responsibility of the Company. No representation or warranty,
express or implied, is or will be made as to, or in relation to,
and no responsibility or liability is or will be accepted by
Panmure Gordon or by any of its respective affiliates or agents as
to, or in relation to, the accuracy or completeness of this
announcement or any other written or oral information made
available to or publicly available to any interested party or its
advisers, and any liability therefore is expressly disclaimed.
Panmure Gordon, which is authorised and regulated in the United
Kingdom by the FCA, is acting as placing agent for the Company and
for no-one else in connection with the Placing, and Panmure Gordon
will not be responsible to anyone other than the Company for
providing the protections afforded to its customers or for
providing advice to any other person in relation to the Placing or
any other matter referred to herein.
The distribution of this announcement and the offering of the
Placing Shares with Warrants in certain jurisdictions may be
restricted by law. No action has been taken by the Company or
Panmure Gordon that would permit an offering of such shares or
possession or distribution of this announcement or any other
offering or publicity material relating to such shares in any
jurisdiction where action for that purpose is required. Persons
into whose possession this announcement comes are required to
inform themselves about, and to observe such restrictions.
This announcement is not for distribution or dissemination,
directly or indirectly, in or into the United States or any
jurisdiction into which the same would be unlawful. No public
offering of securities of the Company will be made in connection
with the Placing in the United Kingdom, the United States, the EEA,
Switzerland or elsewhere.
This announcement is not intended to constitute an offer or
solicitation to purchase or invest in the Placing Shares.
Persons (including, without limitation, nominees and trustees)
who have a contractual or other legal obligation to forward a copy
of this announcement should seek appropriate advice before taking
any action.
The Placing Shares to which this announcement relates may be
illiquid and / or subject to restrictions on their resale.
Prospective purchasers of the Placing Shares should conduct their
own due diligence on the Placing Shares. If you do not understand
the contents of this announcement you should consult an authorised
financial adviser.
The information in this announcement may not be forwarded or
distributed to any other person and may not be reproduced in any
manner whatsoever. Any forwarding, distribution, dissemination,
reproduction, or disclosure of this information in whole or in part
is unauthorised. Failure to comply with this directive may result
in a violation of the United States Securities Act of 1933 (as
amended) ("US Securities Act") or the applicable laws of other
jurisdictions.
Neither the content of the Company's website nor any website
accessible by hyperlinks on the Company's website is incorporated
in, or forms part of, this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCUURURBNASRUR
(END) Dow Jones Newswires
April 03, 2017 02:01 ET (06:01 GMT)
Diamondcorp (LSE:DCP)
Historical Stock Chart
From Dec 2024 to Jan 2025
Diamondcorp (LSE:DCP)
Historical Stock Chart
From Jan 2024 to Jan 2025
