New Substantial Shareholder
• European Islamic Investment Bank plc (’EIIB’) increases holding from 9.37% to 26.7% to become largest shareholder.
• Confidence in long term strength of diamond sector and the continued development of the Lace diamond mine.
• Follows the recently announced Private Placing to EIIB for general working capital purposes
DiamondCorp plc, the South African diamond mining company, announces that the European Islamic Investment Bank plc (’EIIB’) has advised it has increased its shareholding from 9.37% to 26.09% through the acquisition of 6,720,555 shares.
The shares were acquired on market from a number of institutions and shareholders. This purchase follows EIIB’s initial investment into DiamondCorp plc on Wednesday, 5 November 2008, through a private placement of 4,000,000 shares.
The Managing Director and CEO of DiamondCorp, Mr Paul Loudon said: “I welcome EIIB onto our register as our largest shareholder.
This investment demonstrates EIIB’s confidence in the underlying fundamentals of the diamond market, including the long-term supply shortage which should lead to a strengthening in diamond prices.
DiamondCorp’s plan to grow as a mid-tier diamond producer in the years ahead has the potential to benefit from EIIB’s access to capital and backing by very large Middle Eastern investors,” he said.
Mr Robin Henshall, Head of Private Equity and Corporate Advisory at EIIB, said: “EIIB is delighted to have invested in DiamondCorp. We are impressed by the experienced management team and have confidence in the continuing development at DiamondCorp’s Lace kimberlite pipe, which is more than a year ahead of schedule. We look forward to underground mining commencing by the end of this year.”