[2008-10-29]  Diamonex auctions Lerala diamonds

Emerging diamond producer, Diamonex Limited, last week commenced the sale of its first parcel of diamonds from its Lerala Mine comprising more than 10 000 carats recovered during the commissioning and startup phase.




The diamonds were presented for viewing in Gaborone followed by a viewing in Antwerp, a statement from the company said.

The Australia-based company completed the last phase of commissioning at the end of August, leading to the commencement of diamond recovery. Lerala is expected to produce 330 000 carats per year through a 10-year life.

Under its mining lease from the Botswana government, Diamonex first offers its goods to local cutters and polishers before they are offered to international customers in a closed tender process in Antwerp. This dual sales process is part of a major initiative of the Botswana government to grow diamond beneficiation industry in the country.

The BSE-listed company has concluded a Placement Agreement with Hartco Nominees (Pty) Ltd. to raise A$2 million by the placement of 20 million shares. The placement will be carried out in two tranches. The first tranche of the placements will be completed on 22 October 2008 with an allotment of 5,300,000 shares to Hartco at the price of A$0.10 per share. The second tranche of the placements is subject to Diamonex obtaining requisite shareholder approvals at its annual general meeting to be held on Friday November 28, 2008. On the allotment of the 5,300,000 shares, the company will apply for the quotation of the 5,300,000 shares on the ASX, BSE and AIM.

"Diamonex welcomes this further demonstration of confidence by investors," said Chairman Greg King. "In these turbulent times, we continue to implement our planned growth strategy as we move into the production phase for the Lerala Diamond Mine project."

Business


Source: MMEGI