Diamond mining and exploration company Firestone Diamonds plc has conditionally placed 30 million new ordinary shares to raise £9.45 million (US$14.6 million).

Approximately £2.3 million (US$3.5 million) will be used to cover additional capital required to bring the BK11 diamond project in Botswana into production in Q2 2010, while approximately £2.2 million (US$3.4 million) will go towards covering earthmoving costs that have been brought forward into the first year of operation at BK11. The remaining funds will be used to continue the development of the company's project portfolio and for general working capital purposes.

Philip Kenny, CEO of Firestone Diamonds, commented: "We are very pleased to have received significant support from existing and new shareholders for this financing. While we are still progressing discussions with our bankers in Botswana in relation to debt financing for BK11, the completion of this equity financing and expected cash flow from production at BK11 substantially strengthens the company's financial position and will allow us to increase the pace of development of our portfolio of over 100 kimberlites and our toll treatment projects. With Firestone shortly to become one of only three kimberlite producers worldwide outside of the major mining companies and the significant shortfall in rough diamond supply projected in the coming years, we remain confident about Firestone's future prospects."