The natural resources team at Cobbetts LLP in Manchester has advised on a £7.1m fundraising by AIM-quoted South African mining company, DiamondCorp plc.

The funds, which have been raised through a combination of a placing and subscription offer, will allow the emerging diamond producer to resume underground development at its Lace mine in South Africa and continue with its diamond exploration programmes in Botswana.

Admitted to AIM in February 2007, DiamondCorp is focused on developing high margin production assets in the highly prospective diamondiferous regions of South Africa and Botswana.

Davey Brennan led the deal team for Cobbetts, supported by Sue Johnston and Sefton Collett.

Davey Brennan said: “DiamondCorp is one of the few defiant newcomers to survive the 2008 fall in rough diamond prices, primarily due to its determination to mine prosperous sites and its strong focus on maximising shareholder value.

“Rapid take-up of these newly placed shares indicates that both existing shareholders and new investors are keen to support DiamondCorp’s future growth plans. It also serves to reinforce the strength of AIM as a platform for ambitious mining and exploration companies seeking to raise funds for growth.”

This transaction completes just weeks after Cobbetts announced its entry into the Middle East and North Africa (MENA), in response to strong demand for its services from the locality. The launch of Cobbetts International Cairo followed Cobbetts LLP’s corporate team winning a significant mandate in the MENA region, building on its position as the leading legal adviser to basic materials companies on AIM.