JUNIOR MINING

London funding for Australian company’s Botswana diamond project

Brisbane-based DiamonEx Ltd has not had a high profile in Australia but it looks set to show other struggling Australian diamond exploration juniors a clean pair of heels with a target of being a producer by early 2008

Author: Ross Louthean
Posted:  Sunday , 15 Jul 2007

PERTH - 

Two separate capital raisings will help pave the way for DiamonEx Ltd to fund development of the Lerala diamond mine in Botswana.

Fleming Advisors (Pty) Ltd has arranged underwritten funding for Botswana Pula 50 million ($A10 M) fixed  rate convertible bond while London-broker Fox Davies Capital is finalising a share placement to raise $A8 M, subject to shareholders' approval.

DiamonEx's chairman Greg King said: "The conclusion of these funding arrangements will enable the company to complete development of the Lerala mine on schedule, with mining to start late in 2007 and first production due in early 2008."

King said to minimise dilution of existing shareholders only 10% of the convertible bond can be converted into equity.

From December through to May, the company has undertaken four capital raisings.

King said the ASX listed company was now planning to seek admission on the London AIM Board later this year with RFC Corporate Finance Ltd appointed Nominated Adviser.

Lerala is one of four 100% owned diamond properties held by DiamonEx in Botswana and has, based on a late 2005 assessment, an indicated resource of 13.5 million tonnes grading 0.274 carats/tonne for a contained 3.699 M carats. Lerala is also close to DiamonEx' Martin Drift diamond prospect. Both are about 85 kilometres south of Selebi Phikwe.

One report said the company was planning to produce about 330,000 ct per annum over a proposed 10 years mine life.

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