Subiaco-based diamond explorer Elkedra Diamonds NL has raised $3.6 million though a placement to fund further exploration at the company's Chapada Project in Brazil.
The full text of a company announcement is pasted below
Elkedra Diamonds NL is pleased to advise that the Company has received commitments for the placement of 7,713,830 shares at 47 cents per share, raising gross proceeds of A$3.625 million. The placement will be made to sophisticated and professional investors predominately from Europe.
The Directors are appreciative of the support given by Tolhurst Noall Limited, who acted as lead manager for this placing.
Elkedra intends to utilise these funds to accelerate exploration at the Chapada Project in Brazil, and provide on-going working capital.
Debottlenecking of the Chapada processing plant is now well advanced, with the plant achieving in excess of its design capacity at various stages during the month of November. The Company is now well placed to achieve sustainable monthly production of 2,500 to 3,000 carats of high value gem quality diamonds. The Company's next sale is scheduled for the end of this week.
The Company anticipates that the ASX Trading Halt will be lifted as from commencement of trading on 6 December 2006.
