DiamondCorp Plc said April 3 that it will retrench all employees at the Lace mine in South Africa, effective April 3, after discussions with the Association of Mining & Construction Union over placing Lace on care and maintenance failed.
The company's board notified the Industrial Development Corp. of South Africa, or IDC, that unless funding is secured by mid-May, it will be placed into administration.
DiamondCorp was in discussions with IDC for post-commencement funding in addition to a £1 million placement launched in January to avoid impending bankruptcy.
As a result of the retrenchment, the financing from IDC is no longer available.
Meanwhile, the Lace diamond mine has appointed Lebogang Mpakati of Independent Advisory Pty. Ltd., alongside Daniel Terblanche of Deloitte & Touche, as its joint business rescue practitioner.