Kimberley Diamonds’ spin-off exploration company Blina Diamonds is hoping to raise $10.4 million through an initial public offering.
West Perth-based Blina is looking to issue 34.7 million shares at 30 cents a share (to raise a minimum of $7 million) to fund exploration in the Ellendale diamond field in the Kimberley.
Blina will own all Kimberley’s exploration interests in the East Kimberley region outside of its Ellendale mining operation and will have a 153.5 million shares on issue upon listing.
Kimberley will retain a 55 per cent stake in Blina and, under the terms of a management services agreement, the companies will retain close ties.
The offer includes an entitlements issue to Kimberley shareholders on a 1:8 basis.
Kimberley has already made a bonus distribution of shares in Blina to its shareholders on a 1:20 basis.
Key exploration targets include Terrace 5 project, where Blina is targeting an alluvial resource of up to 10 million tonnes potentially containing 400,000 carats, and the J-Channel, where is it targeting an 8mt alluvial resource potentially containing 420,000 carats.
Blina also controls the K1-K2 Lamproite Project and A-Channel Project, where the company believes there is significant potential to discover further lamproite pipes.
“Blina will have the unique opportunity to explore the core of a commercially proven diamond field, which has remained largely untested since its discovery in 1976,” Blina’s chairman Miles Kennedy said in a statement.
“The project areas include about 50 already identified lamproite pipes and a number of diamondiferous alluvial channels.
“Exploration programs by the company are expected to generate many more targets.”
