Thursday, December 07, 2006

Sierra Leone Diamond flags fundraising

Sierra Leone Diamond hopes to raise at least £13m from a placing to fund the expansion of its diamond projects and develop additional non-diamond assets, it said today. The group will place a minimum of 11.3m shares at 115p each, representing approximately 9.6% of its existing issued share capital. The net proceeds of the placing will be used to provide further working capital and support the groups ongoing operations in Sierra Leone. Sierra is involved in developing alluvial diamond exploration and production, hard rock kimberlite exploration and non diamonds projects. SLDC's strategy of securing positive cash flow from its alluvial operations remains on track, said chief executive David Gadd-Claxton. The funds raised will allow the company to increase its alluvial diamond capacity, advance Kimberlite exploration on the numerous Kimberlite targets and finance the drilling of the iron ore and gold deposits.

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