The formal sale process for the Lace diamond mine in South Africa announced last October was terminated. DiamondCorp which owns the mine said it will no more sell the mine adding that it would examine alternative means of enhancing shareholder value in the normal course of business.

After encountering a number of setbacks last month which affected, negatively, its share price, and having difficulties to secure financing for the project, the company announced it would sell the mine. However, a few days later it signed a Sharia-compliant funding arrangement with Rasmala, for £700,000 investment in the project.

The financing facility has been successfully concluded and upon review of the various offers from parties interested in buying the mine, the firm decided that these offers were “opportunistic in nature” and undervalued the company. It added that irrespective of start-up delays, the Lace mine still holds about 9.39 million carat of diamond, worth more than $1.5 billion.

DiamondCorp Plc holds 74% of the Lace project while its joint-venture partners, Shanduka Resources and Sphere Holdings, hold 13% each.

Louis-Nino Kansoun