DiamondCorp issues dire warning over its solvency

14th Oct 2016 11:38

(ShareCast News) - Further to the announcements of 12 and 13 October, in which described production issues and a shutdown notice, DiamondCorp announced on Friday that the third party it was in advanced discussions with for the provision of a convertible debt facility, has withdrawn due to the adverse movement in the company's share price.The AIM-traded firm did say it is in accelerated discussions with certain shareholders and other third parties with a view to securing the necessary additional funding of £0.5m to satisfy immediate financial commitments."In the absence of a successful resolution to these discussions, it is likely that the group will be unable to continue trading as a going concern in the very near term," its board said in a statement."No assurances can be given at this stage that the provision of the required immediate term funding will be entered into either in time or at all."Additionally, in the event that the company secures the required immediate term funding, there can be no certainty that the company will subsequently secure the necessary funding solutions to meet its longer term financial requirements as previously announced."