Kimberley Diamonds (ASX:KDL) has been granted a trading halt by...

Kimberley Diamonds (ASX:KDL) has been granted a trading halt by the ASX pending details of a capital raising.

The company was recently awarded a package of tenements covering the gold-rich Lomero-Poyatos massive sulphide deposit, located within the Iberian Pyrite Belt, Spain’s premier mining district.

The most recent estimate of the deposit was prepared in 2012 by the independent global mining consultancy Behre Dolbear International.

That study estimated the deposit as 830,000 ounces of gold. The Inferred Resource is 6.07 million tonnes at 4.25g/t gold and 88.74g/t silver.

KDL is not required to pay any consideration for these tenements upfront. To maintain these tenements, KDL is required by the Andalusian government to spend €400,000 on exploration expenditure in Year 1 and a further €5 million spread over Years 2 and 3.

The halt will remain in place until the opening of trade on Friday 31st October 2014, or earlier if an announcement is made to the market.