KDL plans to launch a non-renounceable pro-rata rights issue offer of new ordinary shares.
Shareholders who are eligible can buy one new share for every two existing shares held, at a price of A$0.19 ($0.17) each.
The funds raise will also be used for general working capital requirements, the company said.
Lerala was placed on care and maintenance in July 2012 by its former owner Mantle Diamonds.
Lerala is located 34km from the Martin’s Drift Border Post with South Africa. It comprises five diamondiferous kimberlite pipes and has a 15-year mining license covering an area of 21.86km².
At full production, the mine is expected to produce 400,000 carats of diamonds annually.
In June, KDL announced A$14.7m ($13.6m) investment to re-commission the Lerala project.
