DiamondCorp seeking suitor amid viability concerns

18th Oct 2016 11:46

(ShareCast News) - Beleaguered mining company DiamondCorp updated the market on Tuesday, confirming it was actively seeking a suitor with which to combine.The AIM-traded firm had announced on 14 October announced that it was in accelerated discussions with some shareholders and other third parties to address its immediate funding requirements in order to continue trading as a going concern."These discussions are at an advanced stage and, whilst no assurances can be given as to successful resolution to these discussions, the company anticipates updating shareholders in the near term," the board said in its statement.Following that announcement, and in response to initial expressions of interest from potential acquirers, the board said it is of the view that the company should - alongside discussions to secure additional funding - conduct a wider strategic review.That review would be to explore additional opportunities, DiamondCorp explained, including a corporate transaction such as a merger with or offer for the group by a third party, or a sale of the Group's businesses."The board therefore intends to pursue any such possible alternatives to ensure the best outcome for its shareholders."Following this announcement, the group is now considered to be in an 'offer period' as defined in the code."