Kimberley Diamonds (ASX:KDL) will be offering 750 carats of its...

Kimberley Diamonds (ASX:KDL) will be offering 750 carats of its Fancy Yellow diamonds, along with 26,500 carats of commercial production, for sale via auction by eDiamond in September.

The collection will be presented at eDiamond offices in Antwerp, Belgium from 28 August 2014 to 9 September 2014, with the auction taking place on 10 September 2014.

The company is also undertaking a 1:2 rights issue offer of new shares at $0.19 to raise up to $9,912,672.

Proceeds, together with its existing cash reserves, will be used for the re-commissioning of the Lerala Diamond Mine in Botswana and general working capital requirements.

The Lerala Diamond Mine provides a near-term development opportunity beyond its flagship Ellendale Diamond Project and the Argyle Smoke Creek Alluvial Diamond Project, both in Western Australia.

Botswana is Africa's biggest diamond producer, and KDL is planning to bring the mine back into production this year, with rough diamond prices on the rise.

KDL's Ellendale Diamond Mine supplies around 50% of the world’s rare fancy yellow diamonds, currently producing about 120,000 carats of diamonds per year, and Lerala will target a production rate of around 400,000 carats per year.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.