Namakwa Diamonds has raised $55 million through an issue of over 86 million new shares, the company reports.

The diamond company is raising funds to clear debt and develop diamond mining assets. Of the money raised, some $37 million will be invested in Phase I development of the Kao kimberlite.

In the second half of 2010, Namakwa produced 41,816 carats of rough diamonds – the vast majority of which (41,696 carats) were recovered between September 1 and November 24, 2010. The company reports improved quality as production was increased in key diamond mining projects in South Africa, the Democratic Republic of Congo, and Lesotho.

Last month, Namakwa made the news when it sold a 7.53-carat Vivid Orange colored diamond for over $1.3 million – a record per-carat price of $176,713.