Shares Issued and
Outstanding: 63,885,888
TSXV:DMI
OTCQB:DMIFF
KELOWNA, BC -- July 4,
2019 -- InvestorsHub NewsWire -- Diamcor Mining Inc. (TSX-V.DMI) (OTCQB-DMIFF), (the "Company")
announces that the Company intends to complete a term loan
financing (the "Financing") of up to CDN$1,000,000, and has
received an initial commitment of CDN$500,000 from one of
the Company's largest investors (the "Initial Term Loan"), along
with expressions of interests from several other parties. The
Company has submitted the required notification documentation for
the Initial Term Loan to the TSX Venture Exchange (the "Exchange"),
allowing it to finalize documentation associated with closing of
the Initial Term Loan. Additional term loans under the Financing
will be announced and submitted to the TSX Venture Exchange
separately. Term loans under the Financing, including the
Initial Term Loan, will be unsecured, carry an annual interest rate
of 7% payable at maturity and the Company will issue a total of
120,000 common shares in its authorized share capital, along with
60,000 share purchase warrants, for every CDN$100,000 of
principal advanced under the Financing by participants/lenders
pursuant to Policy 5.1 of the TSX Venture Exchange Corporate
Finance Manual. The principal and interest of the Initial Term Loan
is due and payable on the 12 month anniversary of the closing
date.
The proceeds from the
Initial Term Loan 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 Term Loan 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.
SOURCE Diamcor Mining
Inc.
