Diamcor Closes Second Tranche of Financing and Resumes Tendering Rough Diamonds

The company also announced that that it would be holding a tender of 2,618.79 carats of rough diamonds in Antwerp in the coming week.
Diamcor Closes Second Tranche of Financing and Resumes Tendering Rough Diamonds

Diamcor Mining Inc. has announced it has now closed a second and final tranche of the Financing resulting in the issuance of 3,510,315 additional units for proceeds totalling $1,228,610.25.  Each Unit consists of one common share (a “Share”) of the Company, and one-half of one common share purchase warrant (a “Warrant”).  Each whole Warrant will entitle the holder thereof to purchase one Share at an exercise price of CDN$0.60 until August 29, 2021. Securities issued pursuant to the final tranche of the Financing will be subject to a hold period ending on December 30, 2018.  Units and subscription proceeds for subscriptions received from members of the Pro Group will be held in escrow until such time as TSX Venture Exchange final approval to the Offering is received.

The Company further announced that, as part of the second tranche closing, the Company has paid to two finder’s an aggregate cash commission of CDN$6,510.00, representing 6 per cent of the gross proceeds received from subscribers introduced to the Company by such finders, and has issued an aggregate of 18,600 non-transferable warrants to such finders (the “Finder’s Warrants”), representing 6 per cent of the number of Units sold to subscribers introduced to the Company by such finders.  Each Finder’s Warrant entitles the holder to purchase one Share of the Company at an exercise price of CDN$0.60 until August 29, 2021.  The Finder’s Warrants will also be subject to a hold period ending on December 30, 2018.

The proceeds of the second and final tranche, along with the proceeds from the tendering of rough diamonds as discussed below, will allow the Company to continue to proceed with efforts to improve recoveries of water from the Project’s settling dams to support planned increases in processing volumes at the Project for the long-term.  The second and final closing of the Revised Offering is subject to the approval of the TSX Venture Exchange as noted, along with completion of all definitive documentation and filings as required.  As noted, additional securities issued pursuant to the Revised Offering will be subject to a hold period of four months plus one day following the date of their issuance.

Meanwhile, the Company also announced that processing through the previously announced initial screening modifications made to the Company’s Krone-Endora at Venetia facilities are meeting management expectations, and a total of 2,618.79-carats of rough diamonds recovered from initial day-shift only processing over a period of three weeks have been delivered to Antwerp for tender in the coming week.  Rough diamonds tendered will include the previously announced +10.8-carat special category rough diamonds recovered during the same period.

“Our revised facilities are demonstrating their effectiveness in reducing the fines issue, and the results of initial processing, along with the recovery of larger special rough diamonds, is promising”, noted Diamcor CEO Taylor. “A two-staged approach of first refining the facilities’ crushing and screening efficiencies prior to the installation of paste thickening is proving effective, as it is providing us with the ability to increase processing volumes as expected, with the results of those efforts aimed at reducing the relative size of the paste thickener, and the associated costs, for the long-term”, added Taylor.   


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