O’Keeffe’s Burgundy Diamond in $45m capital raising

Michael O’Keeffe-backed diamonds play Bergundy Diamond Mines has kicked off a $45 million capital raising via stockbrokers Aitken Murray Capital Partners and Euroz Hartleys.

The brokers were seeking bids for 63 million new shares to raise $15.2 million in a single tranche placement, which would occur at the same time as the group raised $30 million via the sale of convertible notes.

The placement was at 24¢ a share according to terms sent to investors on Thursday morning, which was a 7.7 per cent discount to the last close and a 7.9 per cent discount to the 30-day VWAP.

The convertibles issue would occur in September, subject to shareholder approval, the term sheet said. Bergundy told investors it had already received firm commitments to raise at least $30 million in the convertibles deal.

Funds raised would be used for the company’s Ellendale Diamond Project in Western Australia’s Kimberley region, and spending at its Naujaat project in Canada and Alliance in Botswana.

O’Keffe, of Riversdale Mining (one and two) and Champion Iron fame, subscribed to $5 million worth of convertible notes, the term sheet said. He is already Bergundy’s biggest investor and a director.

The brokers were calling for bids into the equity raising by 4pm on Thursday.