Australia’s Blina to raise $7.3 Million for Gems Hunt

Australian miner Blina Diamonds is aiming to raise up to AUD$10 million ($7.3 million) in an Initial Public Offering to finance a search for precious gems that will focus on the under-explored Ellendale diamond field in Western Australia.

The Perth-based firm is spinning off from Kimberley Diamond Company, which has produced more than 100,000 carats of gem quality diamonds at Ellendale since 2002, Blina said.

Blina has filed a prospectus calling for the issue of up to 34.7 million shares at AUD$0.30 per share.

The company said it plans to target several near-mine prospects as well as carrying out regional exploration for new lamproite pipes.

“Blina will have the unique opportunity to explore the core of a commercially proven diamond field which has remained largely untested since its discovery in 1976,” said Blina Chairman Miles Kennedy.

“The project areas include about 50 already identified lamproite pipes and a number of diamondiferous alluvial channels.”

Kimberley will retain a 55 percent stake in Blina when it lists on the Australian Stock Exchange, which is expected to be in early August.