Diamondcorp Plc Update with Respect to Finance Facilities (2001S)

TIDMDCP

RNS Number : 2001S

Diamondcorp Plc

19 December 2016

19 December 2016

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 Group" or "the Company")

UPDATE WITH RESPECT TO FINANCE FACILITIES

DiamondCorp plc, the Southern Africa focussed diamond mine development and exploration company, provides the following update on various discussions with existing lenders to the Group following the Company's 74% operating subsidiary Lace Diamond Mines (Pty) Limited ("LDM") being placed in business rescue.

The Industrial Development Corporation of South Africa (the "IDC"), the primary lender to LDM, has formally agreed to a standstill with respect to its rights under the secured project loan to LDM until the completion of the business rescue process.

As a consequence of the IDC standstill, the Company is now engaging with the Group's South African and UK bondholders to achieve formal agreements for a similar standstill. Given regulatory and timing requirements of the JSE Limited with respect to calling a formal meeting of bondholders, it will be early January 2017 before a decision is reached.

Laurelton Diamonds, Inc., a lender to DiamondCorp Holdings Limited, has agreed to roll up its interest until 1 November 2017 or the completion of refinancing (whichever is earlier) and defer capital repayments until 1 March 2018, with interest being accrued during the deferral period at the existing rate of nine per cent. per annum plus an additional two per cent. per annum.

Finally, with respect to the GBP700,000 Shariah-compliant secured convertible financing facility (the "Facility") with Rasmala plc ("Rasmala"), the Company has repaid ZAR 5,067,000 (approximately GBP290,000) and Rasmala has agreed to extend the repayment of the balance of the Facility until 30 March 2017.

The Board of DiamondCorp remain in continuing discussions with the Company's remaining creditors and the Business Rescue Practitioner and management of LDM remain in discussions with all of LDM's stakeholders pursuant to the ongoing business rescue process.

Contact details:

DiamondCorp plc

Paul Loudon, Chief Executive

Tel: [phone]

Chris Ellis, Interim Non-Executive Chairman

Tel: [phone]

UK Broker & Nomad

Panmure Gordon (UK) Limited

Adam James/ Atholl Tweedie

Tel: [phone]

JSE Designated Advisor

Sasfin Capital (a division of Sasfin Bank Limited)

Megan Young

Tel: [phone]

SA Corporate Advisor

Qinisele Resources Proprietary Limited

Dennis Tucker/Andrew Brady

Tel: [phone]

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014 ("MAR").

This information is provided by RNS

The company news service from the London Stock Exchange

END

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December 19, 2016 02:00 ET (07:00 GMT)