BM Diamondcorp Inc raises fund for S. Kalimantan diamond exploration

Canadian junior mining firm BM Diamondcorp Inc. (formerly Battlefield Minerals Corporation) announced Friday that it had sold 3,544,948 units at $0.14 each by way of a non-brokered private placement for proceeds of C$496,293. Each unit consisted of one share and one half of one warrant, each full warrant entitling the holder to acquire one additional share for a one-year period at $0.25.

The proceeds from the private placement will be applied to a program of drilling and pit preparation at the company's recently acquired Cempaka alluvial gem diamond project in South Kalimantan.

The company would commence trial mining in the project in 2002.

The company further said it would raise part of the working capital for the Cempaka trial mining program from the sale of 4,656 carats of gem diamonds in inventory and various debt and debt/equity alternatives currently under consideration.

BM Diamondcorp acquired 80 percent stake in PT Galuh Cempaka, the South Kalimantan diamond project operator from Rio Tinto and Malaysian Mining Corp. Bhd.

The remaining 20 percent stake in Galuh Cempaka is owned by state miner PT Aneka Tambang Tbk. (alex)