Shares Issued and Outstanding:
65,311,488
TSXV:DMI
OTCQB:DMIFF
KELOWNA, BC, Sept. 19, 2019 /CNW/ - Diamcor Mining Inc.
(TSX-V.DMI / OTCQB-DMIFF), (the "Company") is pleased to announce
the tender and sale for the current quarter of 3,759.62 carats of
rough diamonds, along with the delivery of an additional 4,825
carats for tender in Antwerp in
the coming weeks.
The improvement in the total rough diamonds tendered, sold, and
delivered is attributable to the success of current exercises being
performed by the Company's new operational management team at the
Company's Krone-Endora at Venetia Project (the "Project"). The
exercises underway included the evaluation of historical processing
practices and procedures at the Project. As part of this
evaluation and analysis, the Project's new management operating
team commenced the processing of historical tailings and previously
stockpiled material to gather important data. The initial results
of these efforts identified several past deficiencies and other
potential enhancements that should be implemented into new standard
operating practices and procedures. The past deficiencies
identified through these exercises have now been corrected, and new
operating procedures are being implemented to enhance operational
results and efficiencies moving forward. The exercises also
provided the additional short-term benefit of reducing operating
costs associated with heavy equipment and fuel.
Of the total 8,584.62 carats of rough diamonds delivered, an
initial 3,759.62 carats of rough diamonds sold generating total
gross proceeds of USD $569,059.18,
resulting in an average price of USD $151.36 per carat. The Company anticipated this
slightly lower than historical average dollar per carat in the
tender due to the expectation a higher percentage of smaller, lower
quality rough diamonds may be recovered during the exercises being
performed. Current price weaknesses in certain categories of the
rough diamond market are also thought to have contributed to the
lower dollar per carat average achieved, however the Company
anticipates the average price per carat will improve to historical
levels as the processing of newly mined material begins through the
now refined process facilities. Despite the expected increase in
the percentage of smaller diamonds recovered during the current
exercises, various larger gem quality rough diamonds in the +2.0 –
10.0 carat range were also recovered, along with a gem quality
rough diamond weighing 20.66 which was tendered and sold, and a
28.45 carat gem quality rough diamond which will be offered in the
Company's next tender. The recovery of these sizes of rough
diamonds confirms some of the inherent issues with previous
processing operations, and the potential for improved results
moving forward.
"I am very pleased with the results being delivered by
our new operational management team, who have not only confirmed
their ability to identify past inefficiencies in both our
processing facilities and operations, but also demonstrate their
ability to correct these issues and enhance operations moving
forward", noted Diamcor CEO Mr. Dean
Taylor. "We believe the current efforts, focus, and
results will benefit the Project in a meaningful way moving
forward.", added Mr. Taylor.
The Company will provide additional updates regarding the
progress and results of the exercises underway, the new operations
management team, historical issues identified and corrective
actions being implemented in the coming weeks and months.
Term Loan Approval
The Company is pleased to announce that all definitive
documentation, filings, and regulatory approval from the TSX
Venture Exchange for the amended loan financing (the "Financing")
as announced in its news release of August
26th, 2019 have now been received. Subscriptions
received for the amended loan financing resulted in aggregate gross
proceeds of CDN$1,188,000 (the
"Proceeds'). The previously announced initial $500,000 term loan was amended and included in
the Proceeds. Term loans under the Financing are unsecured, carry
an annual interest rate of 7% payable at maturity, and 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 of August
26th, 2019. 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, subscribed for an aggregate of
$155,000 of the Proceeds and 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 to support the
continued advancement of the work programmes currently underway, to
support the deployment of additional operational equipment aimed at
increasing processing volumes at the Project, to provide the
Company with additional working capital to offset the time frames
associated with the tendering and sale of rough diamonds in
Antwerp, and for general and
corporate purposes.
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.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/diamcor-reports-increased-rough-diamond-recoveries-and-new-operational-management-team-300921665.html
SOURCE Diamcor Mining Inc.
