DiamondCorp plc has said in a Corporate and Operational Update that the Business Rescue Practitioner, Daniel Terblanche of Deloitte, has initiated talks with all stakeholders in accordance with legal provisions, even as the management, alongside PwC, continue to evaluate the Group's financial projections and additional capital requirements should the rescue proceedings be successful.

It may be recalled that the Company had to suspend operations earlier after a worker was injured in an explosion, and subsequently the pit was flooded due to unprecedented rains. In its current update, DiamondCorp said that the 310m production level is clear of the flood water and the mine's pumping system is now working on a normal basis even as options and timelines for ramp repair are being assessed.

Meanwhile talks regarding business rescue are proceeding with the involvement of all stakeholders including investors, creditors, lenders, trading partners, the empoyee union and others.

The statement said that the Company is in the process of claiming against its insurance policy in respect of the storm damage and remediation. It added that 5,130 carats of diamonds recovered prior to the mine closure are currently being tendered for sale in Johannesburg.

As a result, all trading on the Company’s shares has remained suspended.