Proceeds earmarked to expand production capacity at the Liqhobong Mine
By Devika Patel
Knoxville, Tenn., Dec. 3 - Firestone Diamonds plc said it plans a private placement of stock. The company will raise £13 million.
The company is selling 52 million ordinary shares at 25p apiece. The price per share is equal to the Dec. 2 closing share price of 25p and is also equal to the closing middle market on Dec. 2.
Mirabaud Securities LLP is the agent.
Proceeds will be used to accelerate the company's plans to recommence production and to expand the production capacity of plant 1 at the Liqhobong Mine in Lesotho and for general working capital purposes.
"We are very pleased to have received significant support from existing and new institutional shareholders for this financing," chief executive Philip Kenny stated.
"We believe that the Liqhobong Mine has the potential to be a highly profitable mining operation and the company is now well financed to restart production and commence work on the planned Plant 1 expansion program in Q1 2011. With BK11 in full production in 2011 and the expanded Plant 1 at Liqhobong expected to reach full production capacity in Q4 2011, Firestone is very well positioned to reach its target of producing 1 million carats per annum by 2014."
Leeds, England-based Firestone is a diamond mining and exploration company with operations in South Africa and Botswana.
| Issuer: | Firestone Diamonds plc
|
| Issue: | Ordinary stock
|
| Amount: | £13 million
|
| Shares: | 52 million
|
| Price: | 25p
|
| Warrants: | No
|
| Agent: | Mirabaud Securities LLP
|
| Pricing date: | Dec. 3
|
| Stock symbol: | London: FDI
|
| Stock price: | 27.5p at close Dec. 3
|
| Market capitalization: | £67.08 million
|
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