ASX-listed miner Kimberley Diamonds which operates the Lerala diamond mine in Botswana has raised $4 million to pay part of the $13 million it owes China-based auction house, Zhejiang Huitong Auction.

To mobilize these funds, the firm issued 40 million ordinary shares at $0.10 per share. It issued another 7 million shares to pay interests associated with the same debt.

Kimberley Diamonds on its fully owned Lerala project started in May diamond production after completing open-pit mining. Once in full production, the firm plans to process 1.4 million tons per annum average for an annual production of 357,000 ct.