Namakwa Diamonds, in the midst of a strategic review, said it was in advanced talks to sell its mining business in the Democratic Republic of Congo, on which it was pinning hopes for a maiden profit.
The troubled diamond producer's shares tumbled 60 percent to a more than three-year low of 10.72 pence on the London Stock Exchange.
In an interview with Reuters in April, the company had said it expected to post its first profit this year on a production boost from its closely watched mine in the Democratic Republic of Congo.
On Thursday, the company also said it did not have access to its $30 million credit facility any longer and that it remained in talks with the lender. It is seeking alternative funding.
Chief Executive Nico Kruger has stepped down as part of the review, commenced in June, and will be replaced by Chief Financial Officer Richard Collocott, Namakwa said.
It announced the resignation of its Chairman Hans Smith on Wednesday.
Namakwa said it would take a $17 million charge as it planned to wind up all its diamond trading joint ventures.
The company operates in South Africa, Botswana, the Democratic Republic of Congo and Israel.
Namakwa said its South African operations, which were hurt by declining grades and increasing costs, would move to a contractor model from an owner-operated model. - Reuters
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