Firestone Diamonds on Tuesday confirmed reports of a police raid at its mine in Liqhobong, Lesotho.
The company said local authorities removed computer equipment from the site without a search warrant or court order on January 16th.
Firestone insisted there was no disruption or impact to operations.
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"The company has also confirmed that it is engaging with the Ministry of Police and has met with the Minister of Mines for Lesotho in order to understand the allegations behind the investigation," the mining company said in a statement.
"The directors of Firestone are not aware of any wrongdoing by the company."
The group declined to stipulate the claims.
Shares fell 12.12% to 3.62p at 8:53 Tuesday.
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