Shares Issued and Outstanding:
63,885,888
TSXV:DMI
OTCQB:DMIFF
KELOWNA, BC, Aug. 26, 2019 /CNW/ - Diamcor Mining Inc.
(TSX-V.DMI / OTCQB-DMIFF), (the "Company") announces that the
Company's term loan financing announced in its news release of
July 4, 2019 has been amended.
The Company has received subscriptions under the amended loan
financing (the "Financing") for aggregate gross proceeds of
CDN$1,188,000 (the "Proceeds').
The previously announced initial $500,000 term loan has also been amended and is
included in the Proceeds. The Company has submitted the
required notification documentation for the Financing to the TSX
Venture Exchange (the "Exchange"). Term loans under the
Financing will be unsecured, carry an annual interest rate of 7%
payable at maturity and, subject to the approval of the Exchange,
the Company will issue a total of 1,425,600 common shares in its
authorized share capital, along with 712,800 share purchase
warrants, to the lenders pursuant to Policy 5.1 of the TSX Venture
Exchange Corporate Finance Manual. The principal and interest
of the Term Loan is due and payable on the 12 month anniversary of
the closing date. Each share purchase warrant (each a
"Warrant") is exercisable to purchase an additional common share at
a price of $0.16 per share for a
period of 12 months. Certain directors and employees of the
Company, including two corporate subscribers, each of which is
controlled by a different director, have subscribed for an
aggregate of $155,000 of the Proceeds
and, subject to the approval of the Exchange, the Company will
issue an aggregate of 186,000 common shares and 93,000 Warrants,
which are included in the totals noted above.
The proceeds from the Financing will be used for general
corporate purposes, the deployment of additional operational
equipment to support increased processing volumes, the continued
advancement of the work programmes currently underway at the
Company's Krone-Endora at Venetia Project, and to provide the
Company with additional working capital to offset the time frames
associated with the tendering and sale of rough diamonds in
Antwerp.
The Financing transaction is subject to regulatory approval of
the TSX Venture Exchange along with completion of all definitive
documentation and filings as required. All securities issued
pursuant to the above will be subject to a hold period of four
months plus one day following the closing.
About Diamcor Mining Inc.
Diamcor Mining Inc. is a fully reporting publicly traded junior
diamond mining company which is listed on the TSX Venture Exchange
under the symbol V.DMI, and on the OTC QB International under the
symbol DMIFF. The Company has a well-established operational
and production history in South
Africa and extensive prior experience supplying rough
diamonds to the world market.
About the Tiffany & Co. Alliance
The Company has established a long-term strategic alliance and
first right of refusal with Tiffany & Co. Canada, a subsidiary of world famous
New York based Tiffany &
Co., to purchase up to 100% of the future production of rough
diamonds from the Krone-Endora at Venetia Project at then current
prices to be determined by the parties on an ongoing basis.
In conjunction with this first right of refusal, Tiffany & Co.
Canada also provided the Company
with financing to advance the Project. Tiffany & Co. is a
publicly traded company which is listed on the New York Stock
Exchange under the symbol TIF. For additional information on
Tiffany & Co., please visit their website at
www.tiffany.com.
About Krone-Endora at Venetia
In February 2011, Diamcor acquired
the Krone-Endora at Venetia Project from De Beers Consolidated
Mines Limited, consisting of the prospecting rights over the farms
Krone 104 and Endora 66, which
represent a combined surface area of approximately 5,888 hectares
directly adjacent to De Beers' flagship Venetia Diamond Mine in
South Africa. On
September 11, 2014, the Company
announced that the South African Department of Mineral Resources
had granted a Mining Right for the Krone-Endora at Venetia Project
encompassing 657.71 hectares of the Project's total area of 5,888
hectares. The Company has also submitted an application for a
mining right over the remaining areas of the Project. The
deposits which occur on the properties of Krone and Endora have
been identified as a higher-grade "Alluvial" basal deposit which is
covered by a lower-grade upper "Eluvial" deposit. The deposits are
proposed to be the result of the direct-shift (in respect to the
"Eluvial" deposit) and erosion (in respect to the "Alluvial"
deposit) of material from the higher grounds of the adjacent
Venetia Kimberlite areas. The deposits on Krone-Endora occur in two
layers with a maximum total depth of approximately 15.0 metres from
surface to bedrock, allowing for a very low-cost mining operation
to be employed with the potential for near-term diamond production
from a known high-quality source. Krone-Endora also benefits
from the significant development of infrastructure and services
already in place due to its location directly adjacent to the
Venetia Mine.
Qualified Person Statement:
Mr. James P. Hawkins (B.Sc.,
P.Geo.), is Manager of Exploration & Special Projects for
Diamcor Mining Inc., and the Qualified Person in accordance with
National Instrument 43-101 responsible for overseeing the execution
of Diamcor's exploration programmes and a Member of the Association
of Professional Engineers and Geoscientists of Alberta ("APEGA"). Mr. Hawkins has
reviewed this press release and approved of its contents.
On behalf of the Board of Directors
Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
DTaylor@diamcormining.com
Tel (250) 864-3326
www.diamcormining.com
This press release contains certain forward-looking
statements. While these forward-looking statements represent
our best current judgement, they are subject to a variety of risks
and uncertainties that are beyond the Company's ability to control
or predict and which could cause actual events or results to differ
materially from those anticipated in such forward-looking
statements. Further, the Company expressly disclaims any
obligation to update any forward looking statements.
Accordingly, readers should not place undue reliance on
forward-looking statements.
WE SEEK SAFE HARBOUR
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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SOURCE Diamcor Mining Inc.
