DTC launches Kyaâ„¢ Diamond Jewelry in South Africa

The Kyaâ„¢ concept reflects the independence and success of the modern South African woman

Post By : Diamond World News Service On 17 August 2006 12:00 AM
Diamond Core was the worst performer in Johannesburg on March 20 falling more than 20% in intraday trading before ending 14.5% lower at R1.71/share. It shrugged off the hammering on the JSE stating that the investors may have shorted the stock even as it applied the finishing touches to R200m book-building programme. Funds from the capital raising will be pumped into two diamond projects scheduled to yield first production in the last quarter of 2006. “Please don’t pay too much attention to what the share price is doing, we don’t,” said Theo Botoulis, Diamond Core MD. “We are doing a book-build in our capital that starts at R1.20 a share. I suppose there are people in the market who are loaning stock and shorting it at a higher price,” he said in an interview.%%Results of the book-build, which comprises the issue of shares and an option to local and offshore institutions, will be published on March 27, 2006. One option will be issued for every 10 Diamond Core shares. On March 17, 2006, Diamond Core consolidated its shares in a ratio of 10 to one. James Allan, a diamond industry consultant who is helping to arrange finance for Diamond Core said, “Before we flew overseas, we were oversubscribed by the South African institutions. We had a good reception from overseas institutions, but in general Diamond Core is considered too small for most of the overseas institutional funds.”
“The response from the South African institutions has been absolutely astounding,” said Botoulas. “It goes to prove if you can put together a good exploration play with some good management and good projects and drive it professionally, you will get backers,” he said. In terms of an over-subscription option, Diamond Core said it could rise up to R230m, a 15% increase over its initial target. The money will be put towards both alluvial and kimberlite projects, where bulk sample trial mining will be conducted.$$Diamond Core will have two divisions, with alluvial mining and exploration falling into one unit and kimberlites into the other.%%“For the Orange River projects, we will construct our bulk sample trial mining facilities and take out a significant part of the resource in order to determine the grade accurately and take it up to SAMREC compliant standards,” Botoulas said. The first two projects to begin delivering diamonds in the last three quarters of the year will be the Paardeberg East kimberlite venture in the Northern Cape Province and the alluvial Silverstreams deposit. Diamond Core will stick to its stated strategy of exploring and developing its projects, but it is keeping a weather eye open for any sensible acquisition opportunities that might arise. “The gold sector consolidated itself. Diamonds needs to be rationalised as well. There are some nice opportunities out there that we are always looking at,” Botoulas said.

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