DiamondCorp Hands Control to Administrators

London: Junior miner DiamondCorp has turned to administrators after flooding at its Lace mine in South Africa last year forced it to shut down the operation.

The board looked into all options to keep DiamondCorp afloat since appointing a business-rescue practitioner in November, the company explained in a recent statement. However, management could not finalize an agreement with either bond holders or the South African mining union. This obstructed the care and maintenance program at the mine and “led to significant liquidity issues for the group,” it added.

The company therefore filed an intention last week to appoint administrators.

DiamondCorp’s shares remain suspended on the London Stock Exchange’s Alternative Investment Market (AIM) and the Johannesburg-based AltX bourse. Its trading on AIM is due to be cancelled on May 15 in line with the exchange’s rules.

  • DiamondCorp Hands Control to Administrators