Junior diamond miner Diamond Corp announced it aims to raise £4 million in order to complete the development of its 74%-owned Lace mine, located in South Africa’s Free State province.

Mining Weekly reported that Diamond Corp was forced to halt developments in the last part of 2008, as a result of the global financial crisis, a move which negatively impacted on its cash flow. The junior miner now finds itself in need of raising funds to ensure the underground mine's development. .

Diamond Corp further noted that a strong price recovery for rough diamonds had led to improved market sentiment towards the sector, prompting it to proceed with a capital raising.

The Lace mine pipe contained about 33,12-million tons of kimberlite in indicated and inferred resources.

The diamond miner also said it plans to raise an additional £1.3-million in order to reduce its debt to the Africa Opportunity Fund.

The new rules state that new and existing foreign businesses have 45 days to submit an empowerment plan to the Ministry of Youth Development, Indigenisation and Empowerment, headed by a Mugabe ally, for approval. Firms directors who fail to do so face up to five years in jail.