- Write by:
-
Monday, July 26, 2021 - 12:48:23
-
853 Visit
-
Print
Mining News Pro - Burgundy Diamond Mines will raise nearly A$50-million to accelerate its diamond strategy.
The company on Monday reported that it had received binding commitments from institutional and sophisticated investors to raise A$49.7-million, of which A$34.5-million would be raised through an unsecured convertible note issue, and a further A$15.2-million through a share placement priced at 24c each.
The company would issue 34.5-million convertible notes, each with a face value of A$1, a three-year term to maturity, and a 6% coupon rate. The notes are unsecured and will convert to a 10% premium to the price of the share placement at the election of the holders.
In conjunction with the note issue, Burgundy will also place some 63.3-million shares, at a price of 24c each, under its existing placement capacity. The placement price represents a 7.7% discount to Burgundy’s last trading price.
MD and CEO Peter Ravencroft on Monday said that the funding package was tailored to give impetus to the ramp-up of the company’s diamond strategy, including the move downstream.
“Since commencing our diamond strategy, we have methodically and significantly expanded our portfolio across favourable mining jurisdictions, and are now pursuing rapid cashflow through early production and significant vertical integration. This positions us well to achieve our goal to become the world’s leading mid-cap diamond company.”
Funds will be used to underpin the development of the diamond projects, including bringing the Ellendale diamond project, in Western Australia, into production by 2022, and to progress Burgundy’s plans to move rapidly downstream and produce cashflow from diamond cutting, polishing and sales of fancy coloured diamonds.
“We are now fully funded to successfully execute several key initiatives within our diamond strategy, predominantly advancing the Ellendale project towards production with lucrative downstream potential, finalising the first stage of the bulk sampling programme at Naujaat, and continuing the promising exploration programme in Botswana.
“Importantly, the funding package also gives us significant financial flexibility to advance our downstream initiatives and continue to consolidate the fancy-colour diamond segment,” said Ravenscroft.
“This is a transformative stage in Burgundy’s unique growth strategy, bringing an innovative and cutting-edge approach to developing an end-to-end diamond business in a high value niche sector of the market. We are excited to now be in a position to pursue the substantial value opportunities that we have identified.”
Short Link:
https://www.miningnews.ir/En/News/615105
When former boss Mark Cutifani left Anglo American Plc in mid-April 2022, things had rarely looked better for the ...
Anglo American Plc said it is has received an unsolicited non-binding combination proposal from BHP Group.
Anglo American Plc said it is has received an unsolicited non-binding combination proposal from BHP Group.
BHP Group Ltd. proposed a takeover of Anglo American Plc that values the smaller miner at £31.1 billion ($38.8 billion), ...
Irish explorer Karelian Diamond Resources (AIM: KDR) said on Tuesday its search for precious stones in Finland has taken ...
An unusually warm winter in Canada this year has delayed the opening of a 400-kilometer (250-mile) ice road that is ...
Russia will regularly buy diamonds from sanctions-hit producer Alrosa through a state fund, the finance ministry said on ...
Antwerp’s diamond dealers face long and costly delays following an EU ban on Russian-origin diamonds that took effect on ...
Debswana Diamond Company’s sales of rough diamonds fell 25.1% in 2023, data released by Botswana’s central bank late on ...
No comments have been posted yet ...