Diamond producer Frontier joins ASX

FRONTIER Diamonds has become the first new company to tread the bourse for 2018, having wrapped up its initial public offer just before Christmas.

Diamond producer Frontier joins ASX Diamond producer Frontier joins ASX Diamond producer Frontier joins ASX Diamond producer Frontier joins ASX Diamond producer Frontier joins ASX

However response to the new ASX-listed diamond producer was tepid, with stock closing unchanged at its 20c per share IPO issue price.

The company successfully raised A$4.06 million from its $4-6 million prospectus with the issue of 20.3 million shares offering investors exposure to two resurrected mines previously owned and operated by Crown Diamonds and Petra Diamonds, and the potential for more projects in the wider Kimberley region.

The company has around 199 million shares on issue, with 105 million issued to SA-based Lutzville Engineering and Reddoor Resources. 

A further of 23.5 million shares were issued to Frontier Mining Projects to settle debts of ZAR43.4 million.

FMP is an entity associated with Frontier managing director Jan Louw, an experienced So...