Blina spin off

KIMBERLEY Diamonds is debt free and spinning off.

Earlier this week Kimberley Diamonds announced it had raised $15.8 million through a placement to clients of Sydney-based Southern Cross Equities.

The funds will free Kimberley up from debts it owes Argyle Diamond Mines and its owner Rio Tinto and BankWest relating to the acquisition of the Ellendale project in 2001.

It also said it planned to spin off some of the Ellendale assets it holds in the $10 million initial public offering of Blina Diamonds to be headed up by former Kimberley employees David Jones and Justin Clarke.

The move will allow Kimberley to focus its attentions on the prospective Ellendale Mining Lease while Blina will focus on the under-explored Ellendale Diamond Field, which falls outside the mining lease.

Kimberley will retain a 50 per cent interest in Blina and Kimberley shareholders will be eligible to participate in the IPO at a discount.